The Azerbaijan Investment Company (AIC) has defined the prospective projects for joint financing by the Black Sea Bank for Trade and Development (BBTD).
Anar Akhundov, the AIC Executive Director, informed Trend that BBTD voiced its interests in financing Azerbaijani projects.
At present a memorandum on mutual financing is being developed and it will be done in parallel with the search of projects, Mr. Akhundov stated. Projects in agriculture, transport and logistics will be considered to attract BBTD credits.
BBTD has not established a framework for financing, but no problems are expected to rise in the financing of projects of a small scale. AIC has a similar scheme of co-financing projects with the European Bank for Reconstruction and Development. In particular, dairy manufacturer, Milk PRO and cement producer, Garadagh Cement. In both projects EBRD acts as a shareholder and AIC plans to acquires a stock package varying from 20% to 25%.
AIC was founded by the order of the Azerbaijani President Ilham Aliyev on March 30, 2006. The authorized capital of the Company is 90 mln AZN. The highest limit is fixed at the rate of 20% from AIC capital to one project or a structure affiliated to it. To Date, the limit is 18 mln AZN, however, this will vary due to the increase in AIC capital. Up to 35% (31,5 mln. AZN) might be invested in any area from AIC capital.