Finance Ministry paid a fraction of the shares of IBA

The Ministry of Finance fully paid its share of the new share issue of International Bank of Azerbaijan. This is evidenced by BSE.

Held on January 17, a trading session on 54 transactions sold shares at a total value of 104,578,781.84 manat. Besides the Ministry of Finance (100.4 million manat), a few shares were bought by the existing shareholders.

The state represented by the Ministry of Finance controls this country's largest bank, with its capital of 50.2 % of the shares. As of June 30, 2013 IBA assets exceeded 6.7 billion manat. At the same time the share capital of the bank , according to the audit report for that period, was 470.6 million manat.

Placement of shares among the 1,800 existing shareholders is scheduled to be completed by the 12th of April. If they do not take advantage of the preferential right, the shares will be offered to other parties.

IBA from late 2009 to 2010, did not issue dividends that made an adequate impact on the market value of its shares. Providing dividends has been resumed since 2012. However, investors are not showing much interest in its shares . Suffice it to note that the nominal 0.26 manat IBA shares are offered in the open market at 0.20 manat.

In March 2011, the government again returned to the plan of selling the state's shares in the single bank, in the capital of which it participates. They selected a consultant from the consortium of companies LLC PricewaterhouseCoopers Audit Azerbaijan, Rothschild & CIE and Salans UK Limited. Since then, the Bank has increased its registered capital from 240 to 368.3 million manat , including AZN 100 million in the form of an additional issue . However, during this period, the bank experienced some financial difficulties, of which it is gradually rebounding. While the government is not defined on several issues  What interest to retain for the state in the capital of IBA ? What a group of investors to offer the privatized "piece" ? In what time frame to complete this process ? Serious differences on these and other issues of the further fate of the IBA are experienced with the International Monetary Fund.

Recall that on the completion of this issue , the IBA plans to raise from shareholders in the years 2015-2017 annually AZN 100 million .

The group of companies JSC International Bank of Azerbaijan also includes two commercial banks in Russia and Georgia , insurance , leasing and processing companies . - 08D-