Azernews.Az

BAKU – The International Bank of Azerbaijan (IBA), the country’s leading bank, said Friday it had drawn a syndicated loan worth $130 million from the world’s leading financial institutions.

"This is one of IBA’s largest transactions in international financial markets sealed this year, which, amid the ongoing crisis and shortage of spare funds in financial markets, is proof of confidence and high interest in the Azerbaijani bank on the part of foreign investors," the bank said in a statement.

IBA spokesman Rauf Aghayev said that though the initial amount of lending was announced at $100 million, investors ultimately increased the figure to $180 million. However, IBA sought $130m in two tranches, worth $51m and 56m euros ($79m). Annual interest rate is LIBOR+2.75 percent.

The one-year loan will finance trade transactions and also serve other purposes.

The allocation was arranged by such heavyweights of the world banking industry as Citibank, Commerzbank, Reiffensenbank, Standard Chartered Bank and Standard Bank Plc. A total of 18 banks from around the globe were involved in the syndication.

In 2001, IBA was the first financial institution in Azerbaijan to attract a syndicated loan worth $10m.

In 2007, the bank drew a subordinated loan totaling $100m for the first time in the history of Azerbaijan’s banking sector.

IBA was established in 1992 as a successor of the Azerbaijan branch of the Foreign Economy Bank. IBA has a well-developed branch network and provides banking services to large corporate clients and, to a lesser extent, to individuals.

IBA is the only Azerbaijani bank with state participation. The state-owned share is 50.2 percent.