International Bank of Azerbaijan (IBA) has for the first time took part in syndicated crediting of foreign bank "Ukrsozbank"

The agreement between borrower and a group of creditors was signed last week in Kiev, a source from IBA told Turan news agency. $13 million worth credit will be granted to the Ukrainian bank for the period of one year. Share of IBA in addition to eight other banks totals $ 1 million and $2 million were allotted by subsidiary company of Austrian "Raiffeisenbank" and "Baeyerische Hypo-und Vereinsbank AG" each. The borrowed funds will be spent to finance some industrial objects, including Zaprozhskii auto plant and steel works factory. Rauf Rzayev, first deputy chairman of IBA Board, said this is not the last bank's breaking out into international capital market. "This business will allow to increase IBA's interest yield. Conditions of "Ukrsozbank" crediting are more attractive that deposit rates of many world leading banks," noted Rzayev. Ukrainian bank has a rather high credit rate "B+". In addition, IBA needs to expand its business outside of Azerbaijan. * In 2001 IBA obtained a syndicated credit worth $9 million. In December 2002 IBA-Moscow for the first time in history of Azerbaijani banks took part at syndicated crediting of Russian "Akbars" bank. Share of IBA subsidiary company in credit totaling $15 million also was $1 million.