International Bank of Azerbaijan Completes $67.5m Debut ECP Notes Sale
Deal completed on Feb. 20, 12-month ECP at 6.25%, according to terms provided by VTB Capital, one of deal’s organizers.
Deal was VTB Capital’s 1st such transaction in Azerbaijan, having previously organized local RUB bonds for Azerbaijan borrowers: Andrey Solovyev, global head of DCM at VTB Capital in Moscow, said by phone.
Financial institutions “usually” use ECPs for short-term investments.
Roadshows for deal were in London, Switzerland.
Dealers: Citi, RBI, UBS (B&D), VTBC; for VTB Capital, “important” to have worked on this deal w/ foreign lenders.
VTB Capital in talks with other Azerbaijan borrowers; for foreign investors, Azerbaijan is diversification from Russia as they seek alternative investments.
VTB Capital looking at Asia, Azerbaijan, Kazakhstan, Belarus, Georgia for potential deals; ECP deal was 1st transaction in CIS this yr which signals “low market activity” in region.