Kazakh investment to Azerbaijan's main commercial bank made by National Bank employees

Baku. 24 May. REPORT.AZ/ Investment to bonds of International Bank of Azerbaijan (IBA) was made not by Kazakhstan Single Accumulative Pension Fund (SAPF), but former employees of the National Bank. 

Report informs referring to Tengrinews.kz, Chairman of Kazakhstan National Bank Daniyar Akshiyev told.

“In October 2014, IBA’s 10-year bonds with 8.25 coupon interest rate worth $250 mln was purchased for SAPF investment portfolio. The issue was placed by special offshore company and Kazakhstan National Bank, who manages SAPF funds, was the only investor. The decision to invest in the bonds was made by employees of the National Bank”, D.Akshiyev told.

The chief banker also noted that 3 plans for restructuring IBA’s debts presented to creditors in London yesterday implies loss and worsening conditions for creditors. In this sense, the National Bank and our government will choose the safest restructuring method”.

Notably, in March 2016, National Bank of Kazakhstan addressed a letter to the Ministry of Finance and IBA expressing their concerns about financial status of the bank. In parallel, Citigroup, the executor of the agreement, reminded the right of bond holder for early repayment.