Investing with AIC

Benefits of co-investing with AIC

• Extensive knowledge of local economy
• Experience in investing of projects of different scale
• In-depth knowledge of local legal framework
• Value-added investing approach for maximum returns
• Joint due diligence and cost sharing pertaining to investment evaluation
• Attraction of additional co-investors from the list of prominent international financial institutions
• Extensive network within public and private sectors

AIC s investment principles

• Investments into commercially effective projects or investment funds
• Investments in all sectors excluding oil and gas production and processing
• Equity investments in the existing companies or green-fields
• Minority shareholding in the invested projects
• Competitiveness of products and their export oriented or import substitute nature
• Compliance or strong commitment to implement financial reporting in line with IFRS
• Verification of financial reports by an independent auditor
• Application of the best corporate governance practices, protection of rights of investors
• AIC representation in the Supervisory Board (Board of Directors)

Establishment of joint funds

AIC also aims to become a “fund of funds” and made progress in this regard as it had co-established “Caspian International Investment Company” (CIIC) together with prominent international institutional investors. In CIIC, AIC owns 24.1% and the rest belongs to Islamic Development Bank, Islamic Corporation for the Development of the Private Sector and other prominent investors from the Middle East. AIC, being a state owned equity fund, can serve as the best investment partner for those who is willing to penetrate Azerbaijan market. AIC would like to invite potential co-investors to join AIC in establishing equity funds in order to benefit from investment opportunities presented by rapidly developing non-oil sector in Azerbaijan.

 

Submission of projects for potential investors


a) detailed information about the potential co-investor (legal entity or private individual):

     1. If the initiator of the project is the legal entity:

  •               Name of the company and its legal form
  •                Date of incorporation
  •                Location
  •                &Address and other contact information, contact person information
  •                Information on company shareholders
  •                Legal documents (incorporation documents, registration documents, etc.)
  •                Field of operation
  •                Market achievements and competitive advantages
  •                Financial information (financial reports for last 3 years)

 

     2. If the initiator is the private individual:

  •                Copy of the passport
  •                Detailed CV
  •                Work record card


b)detailed business plan with the following information:

1. Purpose of the project
2. Summary of the project
3. Information on produced products /provided services

  •               ) Product/services lines
  •               Physical and chemical structure of the product/description of the service
  •               Usage field of the produced product/services

 

4. Illustration of production and services process (drawings, photos, layouts and etc.)
5. Investment plan

  •               Total capital expenditure
  •               Structure of capital expenditure
  •               Information on land to be used

    •                   1. Location of the land
                      2. Legal documents of the land (owned or leased)
                      3. Price of land

  •                Information on equipment to be used
    •                   1. Name, model, and technical specifications of equipment
                      2. Supplier country and companies (at least 2 alternative company should be provided for each equipment)
    3. Price of equipment (at least 2 alternative company price
                      should be provided)
                      4. Delivery and installation terms
                      5. Payment terms
  •                 Information on construction expenditure
    •                   1.Building and construction area
                      2. Building and construction drawings
                      3.Construction budget
                      4.Building and construction area
                      5. Information on infrastructure
                      6. Required infrastructure works 7. Estimates of infrastructure construction
                     
  •                 Transportation means to be used
    •                   1. Brands and technical details of vehicles
                      2. Vehicles’ country and company of purchase
                      3. Prices of vehicles
  •                 Working capital
    •                   1.Breakdown of working capital
              

6. Financing Structure

  •                 Shareholders capital and structure
  •                 The sources, terms and structures of considered debt capital

7. Operational plan of project (execution schedule) in schedule form
8. Market research

  •                 Trends on usage of world products      
  •                 Sales markets of considered products (as to countries)          
  •                 According to the sales markets of considered products

    •                    1. Demand
                           a. Demand volume in last 5 years
                           b. Demand volume forecasts for next 5 years

                       2. Local production and import
                           a. Local production and import volume in last 5 years
                           b. Local production and import volume forecasts for next 5 years

                       3. Price
                           a. Local and import prices in last 5 years
                           b.Local and import prices forecasts for next 5 years

                       4. According to existing and potential competitors
                           a. Production capacity and usage of production capacity
                           b. Prices
                           c. Strength and weakness sides
                  

  •                Potential customers
    •                   1. Names of potential customers
                      2. Demand volume of potential customers
                      3. Long-term purchasing contracts or agreements,if any,with potential customers            

 

9. Raw materials

  •                Names and annual usage
  •                Raw materials quantity usage as to each product unit
  •                Countries and companies of supply
  •                Supply prices

10. Organizational structure and working staff

  •                Organizational structure
  •                Management information
  •                Recruitment sources of working staff
  •                Payments/salary to working staff
  •                Trainings

11. Production plan

  •                Production capacity usage
  •                Annual production
  •                Products’ defects percentage in production
  •                Annual energy usage (gas, energy, fuel and etc)
  •                Production costs

12. Sales plan

  •                Annual sales quantity
  •                Sales costs

13. Financial plans and forecasts

  •                Major assumptions
  •                Income statement (for 5 years)
  •                ) Balance sheet (for 5 years)
  •               Cash flow statement (for 5 years)

14. Risk analysis of project

  •               Major risks
  •               Elimination directions of risks

15. Legal affairs of project

16. Advantages of investment and expected results

  •               Advantages of investment
  •               Expected results

Additional information may be requested.
Please submit aforementioned to info@aic.az or by mail to 11 H.Abdullayev str., Baku, Azerbaijan, AZ1001.

Submission of projects for potential investors