Open Joint-Stock Company (OJSC) Agroinvestbonk, Tajikistan’s largest lender, is seeking foreign investors to improve its operations. The bank is currently conducting negotiations with potential investors from China.
“To ensure an efficient functioning Agroinvestbonk plans to attract means from foreign financial institutions. The bank is currently conducting negotiations with potential investors from various countries, including China,” an official source at Agroinvestbonk told Asia-Plus in an interview.
Specialists from International consulting company Alvarez & Marsal (A&M) are currently working at the bank to help it wriggle out of a tight financial situation.
“The consultants will work out a plan of restructuring as well as a new business/transaction model. They will present their expertise regarding further way of effective functioning of the bank. Potential investors want to get acquainted with the expertise findings before taking any decision on investment in the bank,” the source said.
“Besides, the consultants will evaluate the effectiveness of use by the bank of funds provided by the government,” he added.
Recall, A&M specialists are engaged in recovery of two Tajik distressed banks – Agroinvestbonk and Tojik Sodirot Bonk (TSB).
According to the Tajik central bank’s press service, A&M will work out the plan of recovery of TSB and Agroinvestbonk while EBRD will provide technical assistance for carrying out those works.
TSB and Agroinvestbonk last year experienced severe problems in providing account-holders with their own savings.
But then on December 21, parliament approved a government decree to issue bonds to recapitalize four distressed banks,
TSB reportedly got 2.25 billion somoni ($285 million at end of 2016 exchange rates) and Agroinvestbonk 1.7 billion somoni ($215 million).
Tajprombank was promised 450 million somoni ($56 million) and Fononbank a relatively meager 80 million somoni ($10 million).
The National Bank of Tajikistan (NBT), however, announced on February 24, that it is pulling the licenses of Tajprombank and Fononbank.
In April, it emerged that the government decided unilaterally to allocate the $66 million it had set aside as bailout funds for Tajprombank and Fononbank to construction work on the Roghun hydropower dam.
Founded in 1992, Agroinvestbonk, with headquarters in Dushanbe, has main branches in Khorog, Khujand, Kulob and Qurghon Teppa and dozens of other branches across the republic.
Assets on Agroinvestbonk’s books include more than 730 properties located in various regions of the country, including the bank headquarters in Dushanbe, main branches in Khorog, Khujand, Kulob and Qurghon Teppa, 60 other branches across the country and five service centers. Besides, the bank possesses resort zones in Varzob district, small enterprises, farming units, shopping centers, shops, cafes, drugstores, refueling stations, service stations, warehouses, consumer service centers, and many apartments and residential buildings.
