Bank of Azerbaijan Has No Intentions to Extend a Foreign Capital Share in Authorized Capital

Business Materials 21 February 2007 17:01 (UTC +04:00)

Mammad Hassanli, the Chairman of Azerbaijan, Baku /corr. Trend I. Khalilova / Bank of Azerbaijan is expected to bring its authorized capital up to AZN 20 mln. by the end of 2007. The paid authorized capital of the Bank currently reaches AZN 10 mln. with the aggregate at AZN 12,5 mln. The face cost of each share is AZN 20.

Some alternatives on replenishing the capital of Bank of Azerbaijan will be put into discussion of the shareholders. "This may be at the expense of funds of the existing shareholders or through sale of a part of shares from a new issue to the population or even through placing the bonds," said Mr. Hassanli. Last year some changes in the structure of shareholders of the bank occurred. A Turkish company, "Turanlar Dis Ticaret" resold its share at 1% to a Dubai-based "NEM".

The share of the foreign partner remains unchanged; however the Bank has no plans on involving new foreign shareholders, international financial institutions yet.

In addition to this Company, other two Azerbaijan physical persons enter the team of shareholders of B ank of Azerbaijan .