Azerbaijani Rabitabank sees no problems increasing capital

Business Materials 12 December 2012 15:57 (UTC +04:00)

Azerbaijan, Baku, Dec. 12 / Trend A.Akhundov /

Azerbaijani Rabitabank sees no problems in increasing its capital to meet the new requirements of the supervisory body, the new board chairman Nikoloz Shurgaia told Trend.

According to the CBA board's decision dated July 25, the minimum total capital of existing banks and authorised capital of newly established banks increased from the current 10 million manat ($12.7 million) to 50 million manat ($63.7 million). The new requirement for the capitalisation of the existing banks will come into force from January 1, 2014.

"To date, the authorised capital of the bank has been increased to 30 million manat. At present the registration of emission prospect of shares worth 10 million manat is underway. There will be no problems in further increasing the capital," Shurgaia said.

The placement of an emission prospect of ordinary non-registered Rabitabank shares to the sum of 8.394 million manat started on October 29. Some 413.705 shares were issued at par value of 20.29 manat.

As a result of emission prospect's placement, the authorised capital of the bank was increased from 21.605 to 29.999 million manat.

Rabitabank is a commercial bank that has operated since 1993 in Azerbaijan. In September 2010 Rabitabank signed an investment agreement with the International Finance Corporation (IFC) and European Bank for Reconstruction and Development (EBRD) in connection with their entry into the shareholding structure of the Azerbaijani bank.

The official exchange rate on December 12 is 0.7849AZN/USD.