Asian Development Bank extends a $20 million loan to International Bank of Azerbaijan

Azeri bank said the loan comes for 8 years at Libor +3.85%. The objective of the project is to improve IBA’s capital structure, through the provision of the subordinated debt which is counted as tier 2 capital, and to diversify the bank’s funding base.

The ADB is due to lend one more loan ($20 million) in the future.

International Bank of Azerbaijan (IBA), the largest bank of the region and Azerbaijan, has been in operation since 1992.

The International Bank of Azerbaijan with a government’s 50.2% stake is also owned by the bank staff (10%) and private shareholders (40%).

As of October 1, the bank’s assets stood at AZN 2,345.301 million, loan portfolio at AZN 1,280.481 million, deposit portfolio at AZN 1,544.505 million, aggregate capital at AZN 272.53 million and authorized capital at AZN 97.983 million.

/APA/