CEE & CIS news

Published: September 20, 2017

International Bank of Azerbaijan pushes through restructuring plan

IBA has finally received investor approval to restructure US$3.3bn of debt after months of wrangling.

BA, Azerbaijan’s largest bank, got approval from creditors on July 18 to restructure swathes of debt, after defaulting on its subordinated liabilities in May. 

“Clearly it’s good news that the terms are finally out,” a bond trader who requested anonymity told EMEA Finance when the details were announced. “The last few weeks have been like your doctor telling you that you have a very bad illness, but please wait to see which one.”

In total, 93.9% of bondholders agreed to the terms for restructuring, with roughly 92% opting to swap their IBA senior debt into a new 15 year Republic of Azerbaijan sovereign bond. 

Junior bond holders got half of their US$100mn debt back. Trade finance debts will not see a haircut and will be swapped at par for sovereign debt. 

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