PREFERENCE SHARES

Share is a security which witnesses the participation of its owner in the shareholder equity and which entitles its owner to get the part of the income of the joint-stock company in kind of dividends. The share also gives the right to participate in discussion of the business of the company.

Depending on the order of ownership (method of legitimating) shares are divided into registered and bearer shares; depending on the volume of rights shares are divided into ordinary and preference shares. Preference shares usually entitle its owner for primary income in kind of fixed, set beforehand interest and also for the priority participation in distribution of the property of the joint-stock company in case of its liquidation. Preference shares do not give suffrage at the discussion of the business of the company. For their account relatively small part of the joint stock is mobilized.

6.02.2002
By the decision of Observing Council dated 06 Feb 2002 (protocol № 112) authorized capital of the Bank was increased from 9000,0 mln manat to 12000,0 mln manat. For assurance of increase of the authorized capital of the Bank by the protocol of Observing Council of the Bank was made a decision on emission of thirteenth issue of shares. Information about shares:

- ordinary, registered, not documented
- amount of issue 3000,0 mln manat
- 300000 units
- nominal price 10,0 thousand manat
- serial numbers - 0000001-0300000
- date of beginning of placement - 13 Feb 2002
- date of termination of placement - 13 Aug 2002
- shares are paid by cash and non-cash
- dividends are paid on yearly basis
- shareholders in the frames of their shares have right to vote on the General Meeting, to participate in the elections of Management bodies, to control and management. Shareholders are entitled top get part of income as dividends. At the liquidation of the Bank they have right to get the part of the left property.

Decision on thirteenth issue of shares and emission prospect were registered by the State Committee on Securities at the President of Azerbaijan under state register number 1077 and 1473 on 14 Feb 2002. Shares with total amount of 3000,0 mln manat and minimal price of 10,0 thousand manat were registered on the basis of certificate (license) given by the State Committee on Securities at the President of Azerbaijan on 12 Mar 2002 (register number 1020097B). Report on results of emission of eleventh issue of shares was registered by the State Committee on Securities at the President of Azerbaijan on 05 Aug 2002 (register number 1020097BH). To 24 Jul 2002 there was fully made emission of eleventh issue of shares and authorized capital of the Bank has made 12000,0 mln manat. According to the results of thirteenth emission there were issued 300000 shares with nominal price of 10000 manat.

14.02.2002
On the 14th February 2002 "Azerigazbank" JSIB registered prospect of preference shares emissions in the Committee on Securities under the President of Azerbaijan Republic. Up-to-date the Bank is one of small number of joint-stock companies issuing securities of this kind.

On the 12th March 2002 the Bank received confirmation on the fulfilled emission, i.e. the placement of 50% from the total volume of emitted shares. 500 mln manat is put up for sale in Baku Stock Exchange.

Shares, put up for an auction in Baku Stock Exchange, have the following parameters:

Type of securities: preference shares
Full name of the issuing bank: "Azerigazbank" JSIB
Identification number of the issuing bank: 130010277
Nominal price of one security: 10 000 manat
Minimal purchasing amount: 1 000 000 manat (100 shares)
Total volume of issued securities: 3 000 000 000 manat
Currency: Azeri manat Interest rate: 12%
Periodicity of interest payment: a quarter
Date of interest rates payment: until the 15th of the first month of the next quarter.