Two more banks may merge in Azerbaijan

By  Trend

NIKOIL Bank and AccessBank, the two banks with foreign capital in Azerbaijan, are negotiating the merger, a source in the country’s banking market told Trend.

The negotiations are at an early stage, the source noted, adding that NIKOIL Bank’s takeover of AccessBank is being discussed.

AccessBank owns a 100 percent foreign capital. AccessBank’s shareholders include the Black Sea Trade and Development Bank, the European Bank for Reconstruction and Development, the International Finance Corporation, KfW Development Bank, Germany’s LFS Financial Systems and AccessHolding companies.

Although the shareholders of NIKOIL Bank include local companies (Topaz Investments, ISR Holding) and individuals, Vagit Alekperov, head of Russia’s LUKOIL oil and gas company, is the final beneficiary.

It is yet unknown known how the shares of the merged bank will be distributed, considering the presence of such a great number of shareholders, the source noted. It is possible that the foreign shareholders of AccessBank completely sell their shares, said the source.

Despite all this, the bank maintains its stability, as it has a capital of 140 million manat, and the main guarantor is the availability of such a list of foreign shareholders.

NIKOIL Bank has been operating in Azerbaijan since 1994, and AccessBank since 2002.