IFC suspended decision to buy share in Azerigazbank
International Financial Corporation (IFC) suspended its decision to purchase Azerigazbank assets for indefinite period of time, Trend reports citing the corporation` s official release. The bank had to information on the issue.
Initially, IFC announced about its intension to purchase 17, 5% ($2, 3m) of share and planned to announce the final decision at the Directors council on April 30.
In order to carry out the deal bank had to run emission of its assets in frames of decision to match the founding capital to 12m AZM. 94% of Azerigazbank shareholders are private persons.
IFC had plans to allocate a $3m credit line for 5 year term in order to support small and medium business and $1m for 18 months term to finance trade. IFC statement particularly mentioned, that Azerigazbank occupies leading positions in Azerbaijani banking sector and it is one of the private banks working in the financing sphere.
Azerigazbank is an IFC client from 1998, when it has received a first credit line of $400.000. Consequently IFC enhanced its credit line to $1, 2m in 2003. Long-term financing can allow bank to strengthen its accountancy balance in accordance with the growing needs of businesses and physical persons. Investments will be boosted by the technical aid for bank` s institutional development, especially in the corporative management area, risk management and internal audit.