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EBRD takes major stake in Bank of Baku
Investment will boost bank’s growth, promote competition
The EBRD is paying up to $5 million for a 25 per cent (plus one share) equity
stake in Bank of Baku, a leading private bank in Azerbaijan. The EBRD
investment will help the newly created Bank of Baku to increase business,
strengthen its market position and will help boost overall competition in the
country’s banking sector.
Kurt Geiger, EBRD Director for Financial Institutions, said Bank of Baku is
committed to supporting more companies and individuals by developing new
products and by expanding its branch network beyond the capital city and into
the regions. These are initiatives the EBRD welcomes, and the Bank’s financing
and expertise in the Azeri banking sector will help Bank of Baku to achieve
its goals, said Mr Geiger. And to help further promote standards of
international best practice, an EBRD representative will sit on the Bank of
Baku’s Supervisory Board, he added.
The new Bank of Baku was created earlier this year following the merger of
Ilkbank, which served mainly larger corporate clients, and Bank of Baku, which
funded mainly the retail sector and small and medium-sized enterprises. This
merger has created a new bank with a diversified business and a strong
financial position that will benefit existing and new clients, said Mr Geiger.
The EBRD, under its Early Transition Countries initiative, which supports the
less developed economies where it works, is also providing €200,000 in
technical assistance funds to support, for example, staff training and help
strengthen corporate governance in Bank of Baku.
Thomas Moser, Chairman of the Supervisory Board of Bank of Baku, said: “The
EBRD’s investment and shareholding underlines the Bank’s trust in Bank of
Baku’s exciting future. The EBRD will not only bring additional capital to
Bank of Baku but, importantly, will enable us to benefit from its unique
financial sector expertise.”
The EBRD is one of the largest investors in Azerbaijan, having committed more
than €574 million in the country.
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