Financing under the Facility will be used by IBA to expand its Shari’a compliant financing activities in Azerbaijan. The Facility has a tenor of 18 months and carries a profit rate of 325 bppa over the relevant Libor.
The Facility was launched into general syndication on 13 May 2013, with banks mainly from Middle East and Asia invited to participate in the Facility. IBA, along with Bookrunners, has recently concluded roadshows in UAE, Bahrain and Qatar.
International Bank of Azerbaijan was incorporated in 1992 as a fully state-owned bank and is domiciled in the Republic of Azerbaijan. On 28 October 1992, the IBA became a joint-stock commercial bank and the Ministry of Finance of the Republic of Azerbaijan (“MoF”) became the major shareholder of IBA. Currently, the MoF is the majority shareholder with 50.2% equity stake in IBA.
IBA was registered in the Republic of Azerbaijan to provide commercial banking services and has been operating under a full banking licence granted by the Central Bank of the Republic of Azerbaijan on 30 December 1992.
IBA’s current long term credit rating is Ba3/Negative by Moody’s Investors Service as of November 29, 2012 and BB/Stable by Fitch Ratings as of December 28, 2012.
IBA is the largest bank in Azerbaijan with 33%, 36% and 35% market share in assets, loans and deposits, respectively. IBA currently operates through 37 branches and employs 1,204 personnel.
IBA operates an Islamic window that provides Shari’a compliant financial services in Azerbaijan. Their product offerings are certified by shariah advisory firm Dar al Shariah, based in Dubai, and meet AAOIFI (Accounting and Auditing Orgainzation for Islamic Financial Institutions) standards.
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