OREANDA-NEWS. December 31, 2008. The International Finance Corporation (IFC) has finished preparatory work on its financing expansion for Azerbaijan’s AGBank, in which it has an equity stake.

IFC informed that preliminary consideration of the deal conditions is done.

“Today the deal is expected to be confirmed by the Board of Directors,” it was informed.

Earlier Chingiz Asadullayev, the chairman of the AGBank Supervisory Board, says that work on raising IFC loans is under way despite crisis phenomena at world financial market.

“The Corporation approved preliminarily disbursal of a USD 15 million loan for our Bank and now coordination of interests is being conducted,” Asadullayev said.

The IFC Board of Directors planned to consider a subordinated loan of up to USD 15.0 million to Azerigazbank OJSC (AGB or the Bank) on August 1. The investment is intended to support the Bank’s growth in retail and SME segments by expanding its capital base and lengthening the maturity of its liabilities. IFC provided three senior loans to AGB for funding the Bank’s SME lending and leasing operations in 1998, 2003 and 2006. Also, in June 2006, IFC acquired a 17.5% stake in AGB’s capital.

According to the IFC estimate, as of 31st December 2007 AGB assets totaled USD 184.8 million, net loan portfolio USD 127.2 million and equity USD 21.6 million.

The main shareholders of the Bank are: Mr. Chingiz Asadullayev, Mr. Farzulla Yusifov, IFC and Kazimir Caspian Fund Limited. The Bank then had network of 13 branches and offices and now the network has expanded.