Netherlands Development Finance Company acquires 10% stocks in AzerDemiryolBank

The deputy chairman of the Bank's Board of Directors Shahin Mirzoyev said it was the first case of FMO's investment into the capital of a banking institution in Azerbaijan.


The due contract with the shareholders of the bank, including the European Bank for Reconstruction and Development (EBRD) was signed in late November of 2007.

Thus, the share of foreign financial institutions in AzerDemiryolBank equalled 35%+1 stocks.

FMO is among the biggest financial institutions of the world, which support the development of private sector in the developing countries of Asia, Africa, Latin America, Central and Eastern Europe.

The award fees, paid by FMO for the deal, will exceed the nominal cost of the bank's stocks by several points.

These funds will allow AzerDemiryolBank to strengthen its standing, encouraging rapid development, and will enhance bank's potential in the competitive conditions of the banking sector.

Moreover, considering the appearence of a new shareholder, improvement of the quality of domestic governance and the risk management system, and optimization of the inner structure of the bank, the EBRD (one of the current shareholders of the bank), adopted a decision on raising limit of a credit line under the program of trade financing from $8 million up to $ 11 million for AzerDemiryolBank. It will enable the bank to expand services of trade financing offered to customers.

The aforementioned facts evidence high level of trust to AzerDemiryolBank on the European market, its transparency and compliance of its activity with international standards.

/Day.Az/