Azerigazbank and IFC signed contract on purchase of 17,5% share of Azerbaijani bank

Business Materials 13 June 2006 21:11 (UTC +04:00)

Today a contract was signed between Azerigazbank and International Financial Corporation (IFC) on purchase of 17,5% share of Azerbaijan bank and a contract on opening of a $1m credit line in the finance market for a 5-year period.

The contract amounts to $2,3m, Trend reports. According to Chingiz Asadullayev, the chairman of Azerigazbank, it is the beginning of a wide cooperation that will bring positive changes to the Bank.

Martin Kimmik, regional director of IFC on financial market, participated at the signing ceremony.

According to the representative of IFC in Azerbaijan Aliya Azimova, Azerigazbank was and will be a pioneer in the cooperation with IFC in the financial market of Azerbaijan. The cooperation between IFC and Azerigazbank stared in 1998 and a credit line was opened in the bank for the development of small and medium enterprises.

In 2006, the bank became the pioneer in the project of IFC on provision of technical assistance for the application of corporative standards of management. The participation of the bank in the capital will support its future growth and become productive for increasing

the finance to the development of small and medium enterprise, told Azimova.

According to Asadullayev, by the end of June, a three-side contract will be signed between IFC, Azergazbank and Asian Development Bank.

Asian Development Bank will become the second shareholder in Azerigazbank and will possess 17,5% of the authorized capital of Azerbaijani bank, and the cost of the contract will be at the same amount of the contract with IFC.

At the moment, the authorized fund of Azerigazbank amounts to 7 mln 200 thousand manats, but joint capital 8,7 mln manats.