Deadline nears for IBA consent solicitation

International Bank of Azerbaijan will find out on Thursday whether investors agree to a consent solicitation on its US$198m 7.75% 2018 bonds as the bank seeks to drop covenants in return for repaying the notes early.


IBA has asked investors to waive asset disposal covenants as the bank, working with the country's regulators, has come up with a list of problem assets to transfer to a bad bank.


These assets are mainly loans and advances to customers which are non-performing and high risk.


Assets totalling M2.5bn (US$1.5bn) was transferred last year, with a further M600m due this year.


The deadline is on march 17 at 12:00 London time.


In return for investors agreeing the covenant waiver,  IBA will repay its 2018s in four equal instalments of US$49.5m this year: on April 29, May 31, June 29 and July 25.


This will see the bonds maturing before the issuer's outstanding US$211m October 2016 notes.

www.ann.az