Saudi Investment Group (SIG) intends to buy a 51-percent stake in one of Tajikistan’s largest commercial bank, Tojiksodirotbonk (TSB), which has been experiencing liquidity issues since 2015, according to the TSB press center.
The preliminary agreement was reportedly signed here on May 11 during a visit of a group of Saudi entrepreneurs to Dushanbe to get acquainted with opportunities of investing in Tajikistan’s economy.
The document was inked by TSB head Tojiddin Pirzoda and SIG top manager Al-Waleed Al-Dahash Al-Twaijry.
TSB press center says the agreement is expected to promote stabilization of TSB’s financial situation.
During the visit, Al-Waleed Al-Dahash Al-Twaijry reportedly also held talks with Jamshed Nourmahmadzoda, Chairman of the National Bank of Tajikistan (NBT), Fayziddin Qahhorzoda, Minister of Finance of Tajikistan, and Nematullo Hikmatullozoda, Minister of Economic Development and Trade of Tajikistan.
Recall, four local commercial banks, including Tojiksodirotbonk, have been experiencing liquidity issues since 2015. Parliament in December 2016 approved a government decree to issue bonds to recapitalize the mentioned banks. TSB and Agroinvestbonk were topped up by 2.25 billion somoni (US$284 million) and 1.7 billion somoni (US$215 million) respectively.
The government now owns 85.9 percent of the shares in Tojiksodirotbonk. Before that, 58.89 percent of TSB’s shares had been owned by Closed Joint-Stock Company (CJSC) Evraziya (Eurasia), 11.65 percent by Melodiyon LTD, 10.99 percent by Ehson LTD, 7.38 percent by Media Plyus (Plus) LTD and 1.11 percent by Vostok LTD.
Assets on TSB’s books reportedly include the bank headquarters in Dushanbe, 43 branches across the country, Closed Joint Stock Company (CJSC) Dushanbe Mall (Tajikistan’s largest shopping mall, which is home to the country's first ever hypermarket to be part of the French Auchan chain), Tajikistan Hotel in Dushanbe, eight nine-story apartment buildings in Danghara district (Khatlon province), spinning mills in Danghara and Farkhor districts (Khatlon province), cotton ginneries in Khatlon province, and auto-repair enterprise.
TSB was established in December 1990 as the Tajik branch of the Vnesh Econom Bank of the former Soviet Union, and it initially specialized in trade and import-export banking. Later this branch was reorganized into a Joint-Stock Commercial Bank “Tajikvnesheconombank”. In June 1999 the bank was renamed and registered as Tojik Sodirot Bonk or TSB.
Headquartered in Dushanbe, TSB has 11 branches in the main cities of Tajikistan and covering all regions of the country.
