BayernLB, Calyon and UniCreditGroup as mandated lead arrangers have closed a US$140mn term loan facility for International Bank of Azerbaijan (IBA).


Calyon and UniCreditGroup have been appointed bookrunners and BayernLB will be the facility agent.


The facility was closed substantially oversubscribed and the borrower elected to increase the facility amount from US$80mn to US$140mn.


It has a 364-day year maturity and carries a margin over Libor of 0.70% per year.  It will be used for general corporate purposes.


IBA was established in 1990 as the Azerbaijani office of the USSR’s Vnesheconombank.


It is the largest bank in the South Caucasus in terms of assets’ scope, customer base, international banking relations, number of products and services delivered to customers.


IBA is also the dominant financial institution in Azerbaijan, accounting for more than 50% of the country’s total banking assets. The ministry of finance controls 50.2% of IBA’s shares.