International Bank of Azerbaijan borrows $252 million of Islamic loan

The bank closed its largest Islamic syndicated loan at the end of December, Qurbanzada said.

The lead arrangers and bookrunners included Al Hilal Bank, Barwa Bank, Citigroup, Dubai Islamic Bank, JPMorgan and Noor Bank, he said. The margin is 2.75% over LIBOR.

The International Bank of Azerbaijan aims to sell sukuk this year, he said.

 "Given the current environment in the Western market, access to financing is not as easy as before, we need to develop Islamic finance further in Azerbaijan,” Qurbanzade said.

"Banks in Azerbaijan have the opportunity to "attract financing from Persian Gulf states, the U.A.E., Qatar and Bahrain,” he said.

IBA’s Islamic assets have more than tripled last year to reach $530 million at the end of 2014 against $150 million at the end of 2013, he said.