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IFC Announced Readiness to Buy 10% Share Holding of Azerbaijan Bank

Business Materials 21 February 2007 16:52 (UTC +04:00)

Azerbaijan , Baku /corr. Trend I. Khalilova / Khadidja Hassanova, the Chairwoman of the Board of the Bank Respublika, said that the International Finance Corporation (IFC) showed its interest in acquiring 10% of share holding in the capital of Bank Respublika.

According to her, the above-mentioned proposal will be put into discussion to shareholders of Bank Respublika. The meeting of the Board of the Bank is expected to take place in April, 2007. Concluding a deal with IFC, as well as the amount of the share holding will depend on how they will be solved. Issues connected with IFC entering the capital of the Bank - by acquiring shares from the existing shareholders or through announcing a new issue has not been settled yet.

The Board of IFC took a decision on investing up to $4,5 mln. to the capital of Bank Respublika. In addition, the Corporation will open a credit line at $1,5 mln. with the term of 5 years and with the postponement of payment of the main debt of 2 years. The Bank considers that the agreement on the credit line may be concluded within a quarter. The credit resources are considered for the support of the development of the small-scale and middle-sized entrepreneurship in Azerbaijan .

Bank Respublika has already had a foreign participation in its capital е . 25% + 1 stock belong to Sparkassen International Development Trust (SIDT, a member of Sparkassen-Finanzgruppe) and Deutsche Entwicklungsgesellschaft (DEG, a member of KfW Banking Group).

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