Azerbaijan, Baku, Nov. 13 / Trend /
The International Bank of Azerbaijan (IBA) drew a syndicated loan worth $ 51 million and 56 million euro ($79 million), IBA said.
"This is one of IBA's largest deals on international financial markets this year.
It is the evidence of foreign investors' confidence and high interest in the Azerbaijani bank in terms of the continuing global financial crisis and the shortage of available funds on international financial markets," a statement said.
Rauf Agayev, spokesman for the bank, said that the initial amount of syndication was announced at $ 100 million. But later the total amount exceeded $ 180 million, which is 70 percent more than the original limit of the subscription because financial institutions showed great interest in IBA. The same situation happened before while concluding the previous transactions.
As a result, IBA wanted to get $ 130 million in two tranches on $ 51 million and 56 million euros. The interest rate on the loan was LIBOR / EURIBOR +2,75 percent.
A syndicated loan was given to the bank for one year for general purposes and financing transactions. IBA plans to continue to draw syndicated loans.
The leaders of the international banking business such as Citibank, N.A, Commerzbank Aktiengesellschaft, Raiffeisen Bank International AG, Standard Chartered Bank and Standard Bank Plc. are the authorized organizers of a syndicated loan. About 18 banks from various world countries participated in syndication, including Demir-Halk Bank (Nederland), Coöperatieve Centrale Raiffeisen-Boerenleenbank BA, Landesbank Berlin AG, FBN Bank (UK), Landesbank Baden-Württemberg and UniCredit Bank Austria AG. Most of these banks have already participated in organizing previous syndicated loans for the IBA, or provided funds to the bank within the bilateral agreements.
IBA began to draw funds in 2001 when the bank was the first in Azerbaijan which drew a syndicated loan worth $10 million. The bank drew four major syndicated loans worth $ 56 million (syndicate from 19 banks), $ 130 million (syndicate from 25 banks), $ 140 million (syndicate from 26 banks) and $173.5 million (a syndicate from 28 banks) in 2005, 2006, 2007 and 2008, respectively. The bank drew a subordinated loan worth $ 100 million in 2007 for the first time in the history of the domestic banking sector.