OREANDA-NEWS. July 21, 2009. Kuwait-Azerbaijan Investment Company (KAIC) CJSC, the first session of the Board of Directors took place on 1 July, has launched to consider projects for financing.

The  KAIC general director Riad Gasimov told that the company has already launched primary consideration of 2-3 projects, but deeper analysis will show their prospects.

“Taking into account the plans of our shareholders on increase of capitalization of KAIC up to \\$20mln, we intend to finance not less than 2-3 projects till the end of year,” R. Gasimov said. For the time being, its capital totals AZN 410,000.

“Main directions of investment are rural economy, real property (mainly commercial property) and logistics. During several days the first claims entered, including from regions, where new interesting projects appeared,” R.Gasimov said.  The company has no minimal limitation for rate of financing, and maximum rate makes USD 4-5mln.

The State Securities Committee of Azerbaijan reports that on 1st July 2009 it was registered an issue of KAIK’s ordinary registered book-entry stocks.

Totally 820 stocks worth AZN 500 each passed registration. Overall volume issue is AZN 410,000.

The shareholder agreement on the Company was signed in Baku on 30 March between Azerbaijan Investment Company’s (AIC) executive director Afgan Isayev and chairman of board of Kuwait Finance House’s (KFH) subsidiary Turkapital Holding Corporation Favvaz el-Issa.

KAIC state registration was conducted on 4 June.

AIC and Turkapital are founders.

On 30 March 2009 the first meeting of the KAIC shareholders defined the Company’s investment mandate and then conditions on which KAIC will fund projects (minimum and maximum size of investment in a project and a sector. It was not informed on them additionally.

The KAIK business plan will be made on the basis of investment mandate and operations defined.

The business plan is expected to focus preliminarily on real estate, infrastructure, investments in stocks of private companies, industrial sector, retail sector and other directions.

The agreement signing became possible since the AIC Supervisory Board under chairmanship of Azerbaijan’s Minister of Economic Development Shahin Mustafayev on 14 March made a decision on establishing KAIC.

Primary charter capital of the newly-established company at the level of \\$500,000 was paid by 75% by Turkapital and by 25% by AIC. For the next two years the new Company will increase its charter capital up to USD 20 million with keeping the initial scheme of equity stake distribution.

KAIC will raise foreign investments and finance project of domestic entrepreneurs.