Azerbaijan to invest in BSTDB capital until September 2022

The Board of Governors of the Black Sea Trade and Development Bank (BSTDB) at its extraordinary meeting has decided to increase the subscribed capital of BSTDB from the current EUR 2.29 billion to EUR 3.10 billion, Report informs referring to the press release posted on the bank’s website.

The new subscription follows the increase in the BSTDB authorized capital approved in 2007 and the first round of subscription decided in 2008 and completed in 2018.

The subscription covers 70 percent of the available authorized but unsubscribed capital and leaves unsubscribed 10 percent of the total authorized BSTDB capital of EUR 3.45 billion, which will remain available, inter alia, for potential new shareholders.

The paid-in portion of the newly subscribed capital will be 30 percent, with 70 percent callable - in line with the Bank’s current capital structure. As a result of the new subscription, the Bank will receive an additional capital of EUR 244.96 million, thus raising the paid-in capital held by the Bank to EUR 931.51 million.

“The subscribed capital increase will enable BSTDB to fulfil the strategic objectives set forth in the Long-Term Strategy for 2021-2030 to promote economic development and regional cooperation of Member States and strengthen the Bank’s response capacity in crisis situations while increasing its relevance to shareholders,” reads the message.

The subscription process will be finalized by the end of September 2022, and the BSTDB shareholders will make the subscribed capital payments in eight installments during the period of 2023-2030.

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. BSTDB is rated long-term “A-” by Standard and Poor’s, “A2” by Moody’s.

The bank’s portfolio in Azerbaijan on 37 projects is 489.2 million euros.