Azerbaijani business to get new source of investment in share capital
Azerbaijan, Baku, July 30 / Trend A. Badalova, A.Akhundov /
The Black Sea Trade and Development Bank (BSTDB) expects launching SEAF Caucasus Growth Fund in Azerbaijan soon, Andrey Kondakov, BSTDB president said in an interview with Trend.
"The Fund in Azerbaijan is expected to be launched shortly," Kondakov said.
Kondakov added thay the Fund will invest in growth-orientated private sector of small and medium-sized enterprises in the three Caucasian countries, including Azerbaijan.
He stressed that investments will be made across a range of industries, with particular focus on consumer and business services, agribusiness, distribution and retail, and other sectors. The projects will be chosen by an experienced professional Fund manager.
Kondakov mentioned that BSTDB decided to become a founding member of the Fund, which is the first professionally structured and managed private equity fund in the Caucasus region, last year.
In March, 2012 in Tbilisi, BSTDB signed the partnership agreement establishing the Fund together with the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), and FMO. BSTDB, together with other participating institutions, has a representative on the Fund's Advisory Board to supervise its activities.
Kondakov added that the founding institutions invested $40 million in the Fund, of which the BSTDB contribution is $10 million. "The target amount of the Fund is $70 million, and currently some interested international investors are considering joining the facility," Kondakov said.
"By establishing the Fund, we also strengthened the positive synergies with our development partners in promoting sustainable growth and job creation in Azerbaijan and in other countries of the Fund's operation," he added.