Azerbaijan, Baku, Oct. 22 / Trend N.Ismayilova /
The total volume of foreign loans of the International Bank of Azerbaijan (IBA) exceeds $1 billion, IBA Chairman Jahangir Hajiyev said.
"This is an ongoing process, in which the more expensive tools are replaced by cheaper, and the bank will continue to actively attract funds in 2011," Hajiyev said.
Hajiyev said IBA has attracted two syndicated loans worth about $ 260 million. Syndicated loans were attracted from banks such as Commerzbank, Citibank, JPMorgan and other banks.
"The attraction of syndicated loan is important for us, because the syndicated loan market was not functioning during the crisis, and the investors showed interest in Azerbaijan, including IBA, with the restoration of capabilities of the world market," he said.
According to him, loans were drawn at a rate of 4.5-5 percent for 18 months.
IBA announced in July that the bank had successfully sealed a transaction on drawing a three-year syndicated loan worth $100 million, the first syndicated credit in its history received for such a long term.
The deal was arranged by Credit Suisse International. Such heavyweights of the world banking industry as Halyk Bank, JP Morgan and MDM Bank participated in the transaction.
The funds, allotted with the annual LIBOR +4.75% interest rate, will finance trade transactions and other IBA projects.
Earlier, in February, IBA signed an agreement with Credit Suisse on opening a credit line totaling $111 million to finance trade deals. Moreover, this June the bank concluded an agreement on the sidelines of the annual Islamic Development Bank (IDB) meeting with the International Islamic Trade Finance Corporation (ITFC) on opening a $30 million credit line for the same purpose and a deal with ITFC for another credit line, worth $15m, to fund small and medium enterprise projects.
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