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UniBank doubles authorised capital

11 June 2009 14:38 (UTC +04:00)

Baku. Elnur Huseynguluyev â€“ APA-Economics. The authorised capital of Unibank Commercial Bank OJSC has been doubled and equals AZN 30 mn now. On 5 June, the State Securities Committee of Azerbaijan registered the report of Unibank that contained the summary on the additionally issued shares worth AZN 15 mn.

The placement of the largest share issue since the beginning of Unibankâ€™s operations was completed at the end of May. Unibank had issued 7.5 mn ordinary nominal paperless shares with the apiece par value equalling AZN 2 mn. The structure of the share capital of Unibank did not undergo substantial changes consequent to the issue because the shares were bought up by the existing Shareholders including the European Bank for Reconstruction and Development and the German investment group DEG.

Â«This large increase in the authorised capital is a reasonable step in the context of the strategic development plan of the bankÂ», says Faig Huseynov, Chairman of the Board of Management of Unibank. Mr.Huseynov says that the doubling of the authorised capital in such a short period is the doubtless witness of the stability and reliability of Unibank as well as the guarantee that all the deposits in Unibank will stay intact.

Â«This move will let us carry into life our plan to expand into the provinces as well as improve the product range and ensure the solid presence of the Bank among the leaders of the national banking service marketÂ», Mr.Huseynov comments, adding that by narrowing the gap between the authorised capital and the hefty owned assets Unibank will be able to launch financial operations on a much larger scale through increasing the per-borrower credit limit and raising additional funds on beneficial conditions.

The share issue prospectus of Unibank was registered with the State Securities Committee of the Azerbaijan Republic (No. AZ100100202P) on 30 March 2009. Unicapital OJSC was the underwriter for the issue, the beginning of the placement of which was announced on 17 April and the open-spot trade in the Baku Stock Exchange was completed in the record 22 days in May. The additional share issue was sanctioned by the extraordinary GMS of Unibank following the proposal of the Board of Management.