Azerbaijani International Bank signs first big deal in 2009

Business Materials 19 August 2009 15:44 (UTC +04:00)

Azerbaijan, Baku, August 19 / Trend /

The Azerbaijani International Bank has signed an agreement to draw syndicated loans worth $53.5 million and €5 million, the bank said.

'It is the bank's first large deal on the international financial market in 2009. It testifies foreign investors' trust and huge interest in the Azerbaijani bank amid the continuing global financial crisis and the deficit of free funds on international financial markets," the message said.  

The leaders of the international banks, which include Citibank, N.A., Cooperatieve Centrale Raiffeisen-Boerenleen Bank B.A., Landesbank Baden-Wurttemberg and Raiffeisen Zentralbank Osterreich Aktiengesellschaft, operated as authorized organizers of the syndication.

In total, 10 banks from different world countries, including the Economy Bank N.V., Banque de Commerce et de Placements, Yapi ve Kredi Bankasi A.S., FBN Bank (UK), Unicredit Bank Austria AG и Bayerische Hypo und Vereinsbank AG, participated in the syndication. Most of these banks have participated in organizing previous syndications for the Azerbaijani International Bank or granted funds to the bank within bilateral agreements.

Despite the initial sum of the syndication being announced at the amount of $36 million, as had occurred when concluding previous, the total sum of the deal rose to $53.5 million and €5 million, which is the result of the financial institutions' great interest towards the Azerbaijani International Bank. The funds have been given to the bank for one year in order to finance trade transactions. The bank is planning to further attract syndicated loans in future.

The bank has drawn foreign loans since 2001. The bank was the first in Azerbaijan that drew a syndicated loan to the amount of $10 million. The bank has drawn four large syndicated loans to the amount of $56 million (a syndicate of 19 banks), $130 million (a syndicate of 25 banks), $140 million (a syndicate of 26 banks) and $173.5 million (a syndicate of 28 banks) in 2005, 2006, 2007 and 2008 respectively. The bank was the first in the Azerbaijani bank sector's history that drew a subordinated loan to the amount of $100 million in 2007.    

In 2009 the bank received awards from the magazines Global Finance ("Best bank in developing markets"), Euromoney ("Azerbaijan's best bank") and Еmeafinance ("Azerbaijan's best bank"). The bank was recognized as the most stabile European bank amid the global financial crisis by the European Economic Chamber on Trade, Commerce and Industry. The bank was awarded the first international bank award, 'The Platinum Key', by the Banking Association for Eastern and Central Europe.   

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