Azerbaijan’s largest bank by assets, state-owned ABB, is moving forward with preparations for an international bond sale this year, its chairman Abbas Ibrahimov said at a press briefing on the bank’s annual results. Management is monitoring market conditions for a potential Eurobond in the $300 million to $500 million range and plans to hold a roadshow once it has completed its market assessment.
Ibrahimov said the bank is considering listing the bonds in one of three jurisdictions - London, Ireland or the United States. ABB has already tapped international liquidity earlier this year, raising roughly $230 million in April through a syndicated loan arranged with financial institutions in Gulf countries. The bank expects that international funding will continue to expand as part of its financing strategy.
Proceeds from the envisaged Eurobond would be directed to three principal objectives: financing large corporate clients, supporting the bank’s existing customer base, and advancing regional projects, specifically those in Uzbekistan. On the latter point, ABB expects to begin operations in Uzbekistan in the second half of 2026 following its acquisition of a 51% stake in local lender Davr Bank.
The Azerbaijani banking brand will be present in Uzbekistan under the name ABB Davr Bank, Ibrahimov said. He also noted that the transaction is subject to regulatory approval in both countries and expressed the bank’s hope that approval and registration procedures will be completed quickly.
Key points
- ABB is studying market conditions for a $300 million to $500 million Eurobond issue and plans a roadshow after assessment - impacts capital markets and international debt issuance.
- The bank raised about $230 million via a Gulf-syndicated loan in April and is targeting further international funding - relevant to banking and corporate finance sectors.
- Proceeds are intended for large corporate lending, existing client support and regional projects, including planned operations in Uzbekistan after acquiring 51% of Davr Bank - affects regional development and cross-border banking activity.
Risks and uncertainties
- The timing and success of the Eurobond depend on market conditions, which ABB is still assessing - a market risk to issuance and pricing.
- The planned Uzbekistan expansion requires regulatory approval and registration in both countries; delays or refusals could slow entry - a regulatory risk to the bank's regional growth.
- The bank’s international funding plans rely on continued access to external capital sources, which could be affected by market or counterparty conditions - a funding availability risk for the financial sector.
ABB’s statements highlight a strategy that links international capital raising with targeted regional expansion, while recognizing the procedural and market hurdles that must be cleared before those plans advance.