Azerbaijan, Baku, May 10 / Trend A.Akhundov /
If private shareholders of the International Bank of Azerbaijan refuse to take part in building its authorised capital, the bank's shares in the new emission can be put up for sale on the stock market, Chairman of the Board Jahangir Hajiyev told Trend on Thursday.
Earlier, a meeting of shareholders decided to increase the bank's capital by 100 million manat. Currently, the authorised capital of IBA is 240 million manat.
"We have increased the authorised capital by 100 million manat. The finance ministry has already paid 50 million manat to pay the state share (50.2 percent) participation in the authorised capital of the bank. The remaining 50 percent we, in accordance with the law, have already offered to our other shareholders (who own 49.8 per cent). If the shareholders refuse to pay their share, then, accordingly, the shares will be brought to the market," Hajiyev said.
Under the law, placement of prospectus of the shares' emission may be conducted during the year.
As part of the bank's capitalization, a subordinated loan of 150 million manat for five years was also received from the Central Bank of Azerbaijan. For regulatory purposes, this tool is classified as Tier I capital, which will enable IBA meet the minimum capital adequacy ratio, defined by the Central Bank at 12 percent.
International Bank of Azerbaijan was established in 1992 as the successor of the Azerbaijan branch of "Vnesheconombank". IBA holds a dominant position in the banking sector.
The official exchange rate is 0.786 AZN to $1 on May 10.