Azerbaijan, Baku, July 4 / Trend /
"FINCA Azerbaijan" Non-Banking Credit Organization completed its inaugural bond issue in Azerbaijan's capital markets, as the State Committee for Securities registered 10,000 bonds, each with 1,000 AZN nominal value, for a total issuance of AZN 10 million and with a maturity of 3 years, the organization said today.
The bond proceeds will be used to fund the growing business loan portfolio of FINCA Azerbaijan, which as of June 30 exceeded AZN 140 million.
"This landmark transaction diversifies our funding sources, while providing a significant amount of local currency to support our outreach, and enhancing FINCA brand in the capital markets", Marco de Natale, Chief Financial Officer of FINCA Azerbaijan, said.
The bonds traded on the Baku Stock Exchange were arranged and underwritten by "PASHA Bank" OJSC through "PASHA Capital" LLC. The latter has placed the bonds with institutional investors, and will also provide daily secondary market liquidity.
"This is the first public issue by an Azerbaijani microfinance institution. and PASHA Bank is pleased to provide the development finance community with an access to the local capital markets," Taleh Kazimov, CIO and Board Member of PASHA Bank, said. "Taking into consideration that FINCA Azerbaijan is the largest and oldest NBCO in the country this issue marks an important milestone in the contribution of PASHA Bank to the development of Azerbaijan microfinance sector".
During almost 15 years of activity FINCA Azerbaijan provided clients with loans to the amount of $635 million. With 29 branches and 35 offices across the country provides financial services to more than 140,000 customers. Total credit portfolio of FINCA Azerbaijan is $153 million. According to these indicators FINCA Azerbaijan is not only the largest microfinance organization but also ranks among the largest banks in the country.
The official exchange rate is 0,7844 AZN/USD on July 4.