Azerbaijan International Bank Postpones Eurobond Issue

Business Materials 11 October 2007 14:07

Azerbaijan, Baku / Trend corr I. Khalilova / The International Bank of Azerbaijan (IBA) postponed its first issue of Eurobonds in the amount of $200mln, which was planned to take place in November, the Deputy President of the bank, Vagif Akbarov, said on 11 October.

"The situation in world markets [mortgage market] makes us to be prudent, for liquidity of almost all potential investors has decreased, so I doubt whether we will sell our Eurobonds for a good price," he said.

According to him, IBA intends to consider all prospective markets for placement of its securities (Luxemburg, London, Shanghai etc), except the US market. Nevertheless, American investors may purchase IBA's Eurobonds via other capital markets.

City Group and JP Morgan were selected book-runners for placement of IBA's Eurobonds.

IBA decided to postpone issue of Eurobonds independently of the Finance Ministry's plans, which also is going to place its Eurobonds. Recently the Finance Minister, Samir Sharifov, also making reference to the problems persisting in the world financial markets stated debut issue would not be possible by 2008.

The Finance Ministry's lead-managers on first issue of Eurobonds and their placement in international financial markets are Deutsche Bank AG London and Citigroup Global Markets Limited. First issue was planned to be implemented in the amount of $300mln, but then it was decided to increase it to $500mln.