Azerbaijan, Baku, 7 May / Trend A.Akhundov /
The International Bank of Azerbaijan (IBA) is considering increasing its share capital, the bank's deputy chairman Emil Mustafayev told Trend.
In April, the bank completed the process of increasing the share capital by 100 million manat. The placement of 416.7 million shares at a par value of 0.24 manat started on June 4, 2012 and was completed on April 11 this year. During the placement, 422 transactions were concluded, bringing 100 million manat. Following the placement, the banks' authorised capital rose to 340 million manat.
"The issue of increasing the capital is a priority for the IBA. The strategic plan provides for further capitalisation of the bank. No specific decisions on the following issue of the shares have been made yet, but it is under consideration. Once the decision is adopted, the IBA will undertake specific actions," Mustafayev said.
To date, according to him, the bank's capital adequacy ratio meets the requirements of the regulator.
"In accordance with the standards set by the CBA, the minimum capital adequacy ratio is 12 per cent. Currently, IBA's capital adequacy ratio meets this standard. However, the growth of Azerbaijani economy necessitates the growth of the banking system as well. Accordingly, this requires a balanced availability of capital so that economic expansion could be accompanied by this growth," Mustafayev said.
The International Bank of Azerbaijan was established in 1992 as a successor to the Azerbaijani branch of Vnesheconombank. IBA holds a dominant position in the banking sector. The main shareholder is the government of Azerbaijan with a 50.2 per cent stake whilst 49.8 per cent is owned by private individuals and legal entities.
The official exchange rate on 7 May is 0.7845 AZN / USD.