24.11.2010, 11:00
IBA Obtained Syndicated Loan Amounting to USD130 mn
OREANDA-NEWS. November 24, 2010. The agreement on attraction of a syndicated loan amounting to USD 51 million and EUR 56 million (USD 79 million) by the International Bank of Azerbaijan (IBA) was signed recently, reported the press-centre of IBA.
As it was specified in the communication of the bank, it is one of the largest deals of IBA in international financial markets this year, what with the continuing global financial crisis and the shortage of available funds on international financial markets is proof of confidence and high interest in the Azerbaijan Bank on the part of the foreign investors.
The head of the press-service noted, that despite the fact that the initial amount of syndication was announced at USD 100 million, but, as has already happened at the conclusion of previous transactions, as a result of high level of interest from financial institutions to IBA, the final amount of involvement was more than USD 180 million, which is 70% higher than the initial limit of the subscription. As a result, the IBA wanted to get USD 130 000 000 by two tranches: USD 51 000 000 and EUR 56 000 000. The interest rate on the loan was LIBOR / EURIBOR+2.75% per annum.
"Funds were provided to the bank for 1 year for general purposes and financing transactions. IBA plans to continue to involve syndicated loans" — was stated in the communication.
In the role of the commissioners of the syndicated loan were such leaders of the international banking business, as Citibank, NA, Commerzbank Aktiengesellschaft, Raiffeisen Bank International AG, Standard Chartered Bank and Standard Bank Plc. In general syndication was attended by 18 banks from various countries, among them such as Demir-Halk Bank (Nederland), Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, Landesbank Berlin AG, FBN Bank (UK), Landesbank Baden-Wurttemberg and UniCredit Bank Austria AG. We should add that many of these banks were already involved in the organization of previous syndicated loans for IBA or provide funds to the bank through bilateral agreements.
We would like to remind that the history of external borrowings of MBA originates from 2001 when the bank was the first in Azerbaijan which attracted a syndicated loan worth USD 10 million. In 2005, 2006, 2007 and 2008 the Bank drew four large syndicated loans in the amount of USD 56 million (a syndicate of 19 banks), USD 130 million (syndicate of 25 banks), USD 140 million (syndicate of 26 banks) and USD 173.5 million (a syndicate of 28 banks), respectively. In 2007, the bank for the first time in the history of the domestic banking sector raised a subordinated loan of USD 100 million.
As it was specified in the communication of the bank, it is one of the largest deals of IBA in international financial markets this year, what with the continuing global financial crisis and the shortage of available funds on international financial markets is proof of confidence and high interest in the Azerbaijan Bank on the part of the foreign investors.
The head of the press-service noted, that despite the fact that the initial amount of syndication was announced at USD 100 million, but, as has already happened at the conclusion of previous transactions, as a result of high level of interest from financial institutions to IBA, the final amount of involvement was more than USD 180 million, which is 70% higher than the initial limit of the subscription. As a result, the IBA wanted to get USD 130 000 000 by two tranches: USD 51 000 000 and EUR 56 000 000. The interest rate on the loan was LIBOR / EURIBOR+2.75% per annum.
"Funds were provided to the bank for 1 year for general purposes and financing transactions. IBA plans to continue to involve syndicated loans" — was stated in the communication.
In the role of the commissioners of the syndicated loan were such leaders of the international banking business, as Citibank, NA, Commerzbank Aktiengesellschaft, Raiffeisen Bank International AG, Standard Chartered Bank and Standard Bank Plc. In general syndication was attended by 18 banks from various countries, among them such as Demir-Halk Bank (Nederland), Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, Landesbank Berlin AG, FBN Bank (UK), Landesbank Baden-Wurttemberg and UniCredit Bank Austria AG. We should add that many of these banks were already involved in the organization of previous syndicated loans for IBA or provide funds to the bank through bilateral agreements.
We would like to remind that the history of external borrowings of MBA originates from 2001 when the bank was the first in Azerbaijan which attracted a syndicated loan worth USD 10 million. In 2005, 2006, 2007 and 2008 the Bank drew four large syndicated loans in the amount of USD 56 million (a syndicate of 19 banks), USD 130 million (syndicate of 25 banks), USD 140 million (syndicate of 26 banks) and USD 173.5 million (a syndicate of 28 banks), respectively. In 2007, the bank for the first time in the history of the domestic banking sector raised a subordinated loan of USD 100 million.
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