| The foundation of
AB Finance one year ago (Dec 2002) came as a result
of the restructuring of Mostbank-Azerbaijan and
its investments in many sectors of the economy.
Can you briefly come back on the main guidelines
of your development strategy behind such a restructuring
process?
AB Finance Closed Joint Stock Company was registered
at the Ministry of Justice on December 25, 2002.
The main reason for establishing AB Finance CJSC
was that at those times there were some companies
that operated under the subordination of the Russian
Mostbank in Azerbaijan. And after the collapse
of the company the physical and juridicial persons
of Azerbaijan bought its shares and it became
Mostbank-Azerbaijan. After the Mostbank Azerbaijan
was established it began making investments in
different sectors of the economy. Step by step
it enlarged its activity and it created a necessity
to establish a new and much bigger company.
AB Fin CJSC manages the company through shares.
Presently, AB Finance holds 100% of shares of
Mostbank Azerbaijan, 51% shares of Most Insurance,
100%-Siyazan Brick Production, 100%-Most Trade,
70%-Legal Consulting Law Company, 100%-Ikar auto
and also AB Travel Tourism Company, Most Industry
and AB Construction.
Given the great number of JVs that have been
created in Azerbaijan lately, it is very interesting
to see such a holding with 100% Azeri shareholders?
You are right. AB Finance is a holding with 100%
Azeri shareholders. They are the physical and
juridicial persons of Azerbaijan.
Even if you are very much diversifying, it
is interesting to know on what business you focus
on at present?
Presently we are focused on the cosntruction
material manufacturing.
We have also done initial work for preparation
of the concrete production company and we plan
to start constructing it in the near future.
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As a linking strategy
are you going to use your construction companies
to build hotels and infrastructure as you are making
investments in the tourism sector?
Absolutely. In the management there is a concept
of "synergy", if you are getting more
inflow in some sector you are using it in another
one. And we are going to use our construction
companies to build hotels in the near future.
Now you are also investing in agroindustry?
Our first investment after the banking sector
was agriculture. We have a tomato paste production
company in Lankaran.
Do you intend to diversify in one of those
branches that you invested or you are going to
invest in other fields?
Presently, the most important for us is the top
efficiency of the projects that we implement and
also the construction of the concrete production
company. The investing in other fields is not
included in our near future plans.
When do you expect the return of the investments
you have made?
We get the return of the capital from almost
all the fields we have invested. As to the real
income we have only forecasts on it and we don't
know exactly when we will get it, but surely in
the short term.
Regarding the extent of your business and
your objectives, are you going to open your capital
and welcome foreign investors?
We conduct negotiations with some foreign companies
but we don't have exact proposals and projects
yet. But we would like to have working partnership
with foreign investors and companies. We are looking
for it. But as I mentioned we haven't had exact
proposals and projects yet.
Mostbank Azerbaijan is supposed to change
its name to Standard Bank. I suppose this is because
you want to differentiate it from the Russian
bank…
Yes, we needed to get our own brand and decided
to change the name of Mostbank Azerbaijan to Standard
Bank Azerbaijan on January 1, 2004.
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V.I.P. INTERVIEWS
