The American Investment Bank, otherwise known as ABI Bank, has decided to enter the market for building resorts in coastal areas. Two months ago, ABI established a limited partnership called "BAY VIEW ALTERNATIVE INVESTMENT FUND".
According to the documents, the company BAY VIEW ALTERNATIVE INVESTMENT FUND has a capital of 10.6 million euros, the vast majority of which is in kind, and its shares are owned 99.3 percent by the American Investment Bank and 0.7 percent by Andi Ballta.
The documents show that the vast majority of the company's capital is in the form of a 32-hectare land area in the coastal area of Poros in Vlora. This area was secured by the execution of collateral for bad loans and ABI Bank has now decided to develop it through the creation of a special limited partnership.
SIK limited partnerships are alternative investment funds, which are offered only to qualified and professional clients. They are registered as alternative investment funds by the Financial Supervisory Authority.
Limited partnerships have one partner with unlimited liability. In this case, this partner is ABI Bank, while the other partners generally have limited liability to the extent of their contributions to the partnership.
The limited partnership form operates through investments from other partners who join the partnership after its establishment. These partners can contribute financing for the realization of the project, which is led by the general partner of the partnership, which in this case is Abi Bank.
This is not the only investment of ABI Bank outside the banking system. In May of this year, this bank bought 10 percent of the shares of the tourist company Premier Group for a price of 363 thousand euros, in accordance with the value of the capital. Albanian law allows banks to buy shares in companies up to 10 percent. However, the transaction announced at the National Business Center was part of a wider agreement.
Abi Bank will finance the company with main shareholder Enver Mehmeti for the construction of new hotels with a financing of 16 million euros. While the purchase of shares by the bank is an additional guarantee for the repayment of the loan. Meanwhile, Mr. Mehmeti retains the right to repurchase 10 percent of the shares sold to Abi Bank for the same price plus inflation, if certain conditions are met, such as reducing his liabilities to the bank below the level of 10 million euros and fulfilling the conditions that protect the bank for its financing.
The construction epidemic in Albania has spread so much that it is now attracting banks, which in one way or another are involved with this sector, whether through financing or direct investments.
Editorial
