International Bank of Azerbaijan looks to tap loan market

International Bank of Azerbaijan (IBA) is talking to banks about raising a new internationally syndicated loan, bankers said on Tuesday.


IBA was last in the market in April 2015 when it raised a US$200m equivalent, one-year loan with a group of 18 banks. The bank repaid this loan at maturity rather than come to the market at that stage for a refinancing.


As an exporter of oil and gas, Azerbaijan has been hit by the depressed oil prices and was downgraded in February by Fitch to BB+ with a negative outlook.


According to bankers at the time IBA - along with Access Bank which had a US$30m tranche of a US$60m loan maturing also maturing in April – took the decision that it was not the right time to tap the loan markets and repaid the loans instead.


But now with a slightly improved environment and an increase in oil prices IBA is tentatively approaching banks about raising a new loan.


"IBA is trying to pull something together - it will take time to take-off and it really does depend on pricing expectations,” one banker said.


Citibank acted as co-ordinator on IBA’s 2015 facility. ING Bank, Citi, Raiffeisen Bank International and UniCredit Group were bookrunners and initial mandated lead arrangers.


IBA is the largest bank in Azerbaijan and is rated BB by Fitch Ratings and Ba3 by Moody's.

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