Azerigazbank (AGBank) and the International Finance Corporation (IFC) have concluded for the first time in Azerbaijan an international trade finance transaction involving the issuance of a letter of credit (L/C) in favour of foreign companies.

The transaction was made within the framework of a contract signed between AGBank and IFC on 13 June 2006 according to a bank statement.

Close collaborators

The L/C was issued by the bank and supported by the IFC according to AGBank chairman, Azer Movsumov.

He says the bank and the IFC have worked very closely together over the last eight years to the extent that now the gross amount of finance allocated by IFC to AGBank is US$5.2 million. Of this amount US$4.2 million is earmarked for the development of small- and medium-sized enterprises while US$1 million is allocated for trade financing.

IFC acquisition

AGBank was registered by Azerbaijan International Bank on 9 November 1992. The bank has been a member of Europay International since December 1997 and a member of SWIFT since November 2000.

In June 2006 the IFC said it would acquire up to a 17.5% stake in AGBank. At the same time it announced its US$1 million trade finance line to the Azeri bank.

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