Baku, Azerbaijan, April 21, 2009
—IFC, a member of the World Bank Group, has helped Azerbaijan’s Davachi Broyler, a leader in poultry production, improve corporate governance practices substantially, enabling the company to better protect its shareholders and attract $14 million in equity from a local investor.
After collaborating for three years with the IFC Corporate Governance Project, Davachi Broyler is now one few companies in Azerbaijan that takes adequate measures to protect minority shareholders’ rights. The company has adopted a new charter that clarifies roles and responsibilities of managers and board members, established a position for a corporate secretary, and improved its internal audit process to strengthen the reliability of operations.
“We see a direct link between the company’s profitability, its quality of production, and its corporate governance practices,” said Zakir Azimov, Chairperson for Davachi’s Management Board. “We are grateful to IFC for guiding us in perfecting our practices and improving efficiency.”
As part of its efforts, the company has initiated more frequent and efficient shareholders meetings. It has also developed a dividend policy followed by regularly paying dividends, which is a remote prospect in most Azerbaijani companies.
Superior corporate governance is one of the key factors that has enabled Davachi to attract a new shareholder, the Azerbaijan Investment Company. “IFC’s assistance has helped enhance the company’s transparency and operations, making it a more attractive client for equity investment,” said Anar Jafarov, the AIC representative on Davachi’s Supervisory Board.
IFC’s Corporate Governance Project helps improve practices at Azerbaijani joint-stock companies and banks, enhancing their operations. Since 2005, the project has facilitated external investments of $119.4 million attracted by 11 local companies. It is supported with funds from the government of Switzerland’s State Secretariat for Economic Affairs.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
