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Azerbaijani Bank Prepared to Expand Cooperation with Asian Development Bank

Business Materials 2 May 2008 13:19 (UTC +04:00)

Azerbaijan, Baku, 2 may / Trend corr. I.Khalilova / The International Bank of Azerbaijan (IBA) will not hold intensive negotiations on the use of the remaining $20mln reserved from the Asian Bank of Development (ABD), Vagif Akbarov, ABD Board Chairman, stated.

"Naturally, we will benefit from working with ABD, which has a high rating (AAA). In particular we would like to get an ADB rating for our securities in order to increase contractual prospects,' Akbarov stated.

IBA signed its first credit deal of $20mln with ADB at the end of 2007. ADB is to direct part of the credit to implement unique projects with IBA. Under the credit deal conditions, the funds were allocated to the Azerbaijani bank for an eight-year period. The credit rate during the first five years is specified in the rate of six months libor+3.85% and the next three years - six months libor+5.35%.

ADB evaluated IBA as a potential bank and has demonstrated its interest to cooperate. ADB is planning to introduce more unique bank products through IBA.

"This is a big project, which is carried out without state guarantees in the bank sector, not only in Azerbaijan, but also in the whole region, which will make the Asian Development Bank in the lead amongst institutional investors. Taking into consideration that the credits are planned for IBA second rate, it will allow the capitalization of the International Bank to expand.

The official rate at 1 May is 0,828 AZN/USD

The correspondent can be contacted at: [email protected]

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