Baku, Azerbaijan, Nov. 16
By Emin Aliyev - Trend:
The International Bank of Azerbaijan (IBA) plans to issue Eurobonds in 2014 in the amount of $500 million, IBA Board Chairman, Jahangir Hajiyev told journalists on Nov. 15.
"Issue of Eurobonds is justified by an increase in the bank's capital and it may take place upon completion of the audit of the IBA's activity over the current year," Hajiyev said.
According to him, the bonds will presumably mature in five to seven years.
Earlier, the IBA conducted four issues totalling $600 million - in 2007 (amounting to $100 million at a yield of 8.4 per cent and maturity term of 10 years), in 2010 (three-year bonds worth $130 million at a rate of 8.5 per cent) and two issues in 2013 (by $198 million at the rate of 7.75 per cent with a maturity term up to 2018 and by $151 million at a rate of 7.2 per cent with the maturity term up to 2016).
Aside from that, this year the subsidiary bank of IBA - Bank IBA Moscow placed bonds worth three billion rubles (approx. $92 milllion) maturing in 2016 at a rate of 10.75 per cent per annum.
The International Bank of Azerbaijan was founded in January 1992 and is the largest in the country. The bank's main shareholder is the Azerbaijani government which owns a 50.2 per cent share with a 49.8 per cent of share owned by private individuals and legal entities.