AIC Announced Terms on Signing First Agreements on Investment Projects

Business Materials 8 December 2006 18:05 (UTC +04:00)

Azerbaijan Investment Company (AIC) JSC is to sign 3-4 memorandums on mutual understanding with companies where AIC wants to invest to till the end of 2006.

According to Riad Gasimov, Deputy Executive Director of AIC, the agreements on investing into the projects will be signed within a month or two after the memorandums are signed. First agreements are expected to be signed in January-February, 2007, Trend reports.

Presently, 15 projects related to foodstuff and agriculture are being considered by AIC. A number of proposals have been received from construction companies. These proposals were very interesting to us, and we would like to turn our activity into the construction field. There are some interesting projects among them, for example, the construction of large-scale business complexes, said Mr. Gasimov.

According to him, at present the Company is negotiating with some foreign companies. And just on the bases on the negotiations, AIC intends to found several joint enterprises in the sphere of water treatment. Memorandums on mutual understanding are expected to be signed on the projects till the end of the year.

The minimal amount of AIC investments may be put at 1 mln. AZN, taking into account that fact that we have no right to acquire most of the shares. We are allowed to be a shareholder. The above-mentioned projects may reach 3-5 mln. AZN, said Mr. Gasimov.

AIC Supervisory Council has established limits for participation in these projects. The highest limit was fixed at the rate of 20% from AIC capital to one project or a structure affiliated with it. To Date, the limit reaches 18 mln. AZN, however, that will vary due to the increase in AIC capital.

Up to 35% (31,5 mln. AZN) might be invested to any sphere from AIC capital. At the same time, the Supervisory Council may make an exception to this clause. If the proposed projects are significant and efficient, this limit might be reviewed.