VTB plans to attract syndicated loan for major projects in Azerbaijan

To participate in major projects in Azerbaijan, VTB Bank (Azerbaijan) is interested in a syndication with local banks, as well as in financing through the parent bank, Bank's Board Chairman Yevgeny Kirin said at a press conference.

"Prudential norms (in terms of a loan to capital ratio - ed.) do not allow Azerbaijani banks to finance projects of companies such as the State Oil Company of Azerbaijan (SOCAR) and Azerbaijan Railways CJSC. Therefore, this issue can be solved through syndicated loans. As a second option, we consider financing through the parent company, which can attract bank resources both in Russia and in Europe," said Kirin.

According to him, at present, negotiations are under way with Azerbaijani banks and companies in terms of organizing syndication. "Negotiations with someone are at the decision-making stage and at the stage of a dialogue with others. A meeting with one of the banks and borrowers is scheduled next week," said Kirin.

Touching upon the size of the deal, the head of the bank noted that with syndicated lending together with Azerbaijani banks, the amount could be in tens of millions of manats, and with financing through the parent bank, it would start at $50-100 million.