September 1, 2017 / 4:34 PM / a year ago

UPDATE 1-Azerbaijan launches new bonds as part of IBA debt swap

 (Adds new info, details)
    BAKU, Sept 1 (Reuters) - Azerbaijan's new dollar bonds, issued as part of a
restructuring of the state-run bank IBA, started trading on Friday, with two of
the issues big enough to be eligible for the main emerging debt benchmark,
JPMorgan EMBI Global.
    The International Bank of Azerbaijan (IBA) earlier this year angered
investors with a plan to restructure $3.3 billion in debt and said in July it
had received approval from creditors holding 93.9 percent of the affected
    The scheme allowed bondholders to swap into new dollar issues from the Azeri
sovereign as well as IBA. 
    IBA issued a $1 billion Eurobond due in 2024 with a 3.5 percent coupon, the
bank's documents showed. IBA also said in a statement the Azeri finance ministy
had approved seven of its own new Eurobonds, due from December 2017 until
September 2032 and with a total worth of $2.266 billion.
    Traders in London said some of the new bonds were trading fairly actively,
with Tradeweb data showing the $300 million 2029 issue quoted at 104 cents
 and the 2032 $1 billion bond at 87 cents.
    The 2029 IBA bond was quoted around 87 cents.
    Inclusion of the 2029 and 2032 bonds into the EMBI index will raise
Azerbaijan's weight in the benchmark, analysts said.
    Lazard acted as financial adviser to the bank for the restructuring.
    Below is a table of all the new issues:   
 The Republic of      0.850%     01.12.2017  U.S.$184,508,000 0.850 per cent.
 Azerbaijan                                  Notes due 2017
 The Republic of      2.820%     01.09.2018  U.S.$173,524,000 2.820 per cent.
 Azerbaijan                                  Notes due 2018
 The Republic of      2.820%     01.09.2019  U.S.$173,524,000 2.820 per cent.
 Azerbaijan                                  Notes due 2019
 The Republic of      2.820%     01.09.2020  U.S.$173,524,000 2.820 per cent.
 Azerbaijan                                  Notes due 2020
 The Republic of      2.820%     01.09.2021  U.S.$173,524,000 2.820 per cent.
 Azerbaijan                                  Notes due 2021
 The Republic of      5.125%     01.09.2029  U.S.$310,718,000 5.125 per cent.
 Azerbaijan                                  Notes due 2029
 The Republic of      3.500%     01.09.2032  U.S.$1,076,578,000 3.500 per
 Azerbaijan                                  cent. Notes due 2032
 International        3.500%     01.09.2024  U.S.$1,000,000,000 3.500 per
 Bank of                                     cent. Notes due 2024

 (Reporting by Nailia Bagirova; writing by Margarita Antidze and Sujata Rao;
editing by Richard Balmforth)
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