Top bank postpones issuance of eurobonds
The International Bank of Azerbaijan, the country`s
leading bank, has decided to postpone the issuance of eurobonds
sanctioned by its board in October 2006. According to Jahangir
Hajiyev, Chairman of the IBA Board, the global situation is
currently not very favorable for this.
"It is more reasonable to wait until the issue of the sovereign eurobond, which is done, as far as I know, like in other countries. There will be some benchmark for the issuance of eurobonds by IBA", said Hajiyev.
Earlier IBA planned to issue the bonds in the third or fourth quarter of 2009. Volumes have not changed. The bank expected the interest rate at 9-10%.
The IBA issue will be $200 million for three to five years. The issue is to be arranged by Citigroup and JP Morgan.
The issue of sovereign Eurobonds can be in the amount of up to $500 million for a five-year period, and the Ministry of Finance had postponed it for 2009, at the earliest, until world capital markets stabilize.
"It is more reasonable to wait until the issue of the sovereign eurobond, which is done, as far as I know, like in other countries. There will be some benchmark for the issuance of eurobonds by IBA", said Hajiyev.
Earlier IBA planned to issue the bonds in the third or fourth quarter of 2009. Volumes have not changed. The bank expected the interest rate at 9-10%.
The IBA issue will be $200 million for three to five years. The issue is to be arranged by Citigroup and JP Morgan.
The issue of sovereign Eurobonds can be in the amount of up to $500 million for a five-year period, and the Ministry of Finance had postponed it for 2009, at the earliest, until world capital markets stabilize.
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