DUSHANBE, December 27, 2012, Asia-Plus — Agroinvestbonk, which is the third largest commercial bank in Tajikistan, has been given 200 million somoni in recapitalization.
“Agroinvestbonk has been involved in implementation of national programs to finance industrial facilities being of nationwide significance in recent years,” an official source at Agroinvestbonk told Asia-Plus in an interview. “Besides, the bank has allocated funds to ensure food security of the country.”
According to him, Agroinvestbonk’s investments had a long-term character while the credit resources were short-term loans. “Proceedings from this, the government has recapitalize Agroinvestbonk with 200 million somoni in order to support it,” the source noted.
Representatives of the National Bank of Tajikistan (NBT) have refrained from commenting on the recapitalization issues.
Recapitalization is a sort of a corporate reorganization involving substantial change in a company”s capital structure. Recapitalization may be motivated by a number of reasons. Usually, the large part of equity is replaced with debt or vice versa.
According to Wikipedia, one example of recapitalization is a leveraged recapitalization, wherein the company issues bonds to raise money, and then buys back its own shares. Usually, current shareholders retain control. Another example is a leveraged buyout, essentially a leveraged recapitalization initiated by an outside party. Usually, incumbent equity holders secede control. Another example is nationalization, wherein the nation in which the company is headquartered buys sufficient shares of the company to obtain a controlling interest. Usually, incumbent equity holders lose control.
Founded in 1992, Agroinvestbonk, with headquarters in Dushanbe, has main branches in Khorog, Khujand, Kulob and Qurghon Teppa and 61 other branches across the country. The bank is focused on providing financial services to micro-, small- and medium-sized enterprises and to the agricultural sector. As of June 1, 2012, Agroinvestbonk’s authorized capital stock amounted to 185 million somoni.
Sixteen banks, including one state-owned, nine commercial banks and branches of six foreign banks, now operate in Tajikistan.
OJSC Orienbonk with authorized capital stock amounting to 300 million somoni is Tajikistan’s largest commercial bank. It is followed by Tojik Sodirot Bonk (TSB). TSB’s authorized capital stock amounts to 250.3 million somoni.
