22 Dec. 2010

Rabitabank and IFC signed corporate governance consultancy agreement

On December 21st 2010 International Finance Corporation (IFC), a member of the World Bank Group, and Rabitabank signed the consultancy agreement to enhance corporate governance standards at the bank. IFC will assess the bank’s corporate governance practices and develop tailored improvement plans to align them with international best practices.
“This project is a timely initiative, as international financial institutions are becoming shareholders of Rabitabank. We are looking forward to this partnership to take the governance standards of the bank to the next level,” said Elchin Gadimov, Deputy Chairman of Rabitabank.
Project is expected to commence in January 2011 and continue throughout first part of 2011. IFC will advise and train directors, managers, and key shareholders of the institution. In addition, IFC will help revise corporate documents, improve board practices and information disclosure.
 "Robust corporate governance practices are an essential foundation to build a strong and sustainable bank, to ensure good decision-making and to attract investment.  With Rabitabank, we believe, we have found an organization committed to improving its corporate governance practices which will strengthen the bank's position and enable it to continue its successful development," said Caroline Bright, Project Manager of IFC’s Azerbaijan Corporate Governance Project.
Since 2005 IFC’s Azerbaijan Corporate Governance Project has been helping local companies and banks to enhance operations and increase their ability to attract financing and investment.
Rabitabank is a long time partner of IFC. In 1997 Rabitabank was among first financial institutions to receive a credit line from IFC. Over last years, the partnership has expanded into several credit lines and advisory services to the bank. On September 30 2010, Rabitabank and IFC signed shareholder agreement for IFC to purchase 12.5% and one share of the bank.
Rabitabank is a commercial bank operating in Azerbaijan since 1993. As of September 30, 2010, total assets of the bank amounted to USD 145 million while the total capital was USD 20 million. Rabitabank provides full range of financial services to its retail and corporate clients through a network of 20 branches including 15 in the regions of Azerbaijan and 6 in the city of Baku.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. IFC creates opportunity for people to escape poverty and improve their lives by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, new investments from IFC climbed to a record $18 billion in fiscal 2010.


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