OREANDA-NEWS. May 02, 2008. The International Bank of Azerbaijan (IBA) intends to keep the agreements with its main shareholder Ministry of Finance (equity stake of 50,2%) during debut issue of eurobonds sanctioned by the IBA Board on October 25, 2006, reported the press-centre of IBA.

Vagif Akbarov, IBA Deputy Chairman of Board, said that in compliance with the IBA-MoF agreement eurobonds will be issued after issue of sovereign bonds.

“There is an improving tendency at markets. Recent issues of other issuers confirm that that gives us a reason to come forward with an initiative concerning eurobonds issue process fastening. It would be desirable if the Finance Ministry would be the first to issue bonds,” V.Akbarov said.

The Law on State Budget 2008 allows issue of sovereign bonds, scheduled for 2007, this year.
“We haven’t corrected parameters of our own issue of bonds, compared to original plans,” V.Akbarov said.

The IBA is to issue eurobonds in Reg S format for about \\$200 million for 3 or 5 years. Citigroup and JP Morgan undertook its organization. The issue was scheduled for October or November. The issue of sovereign bonds will make up to \\$500 million for 5 years, and MoF postponed it for at least 2008 until world capital market stabilizes.