Azerbaijan raises $1.2bn in international bond debut

Photo: Azerbaijan raises $1.2bn in international bond debut / Economy news

Baku, Azerbaijan, March 10

By Emin Aliyev - Trend:

Azerbaijan has raised $1.25bn in its first international bond sale, in a sign of continued investor interest in emerging economy debt despite the market turmoil in nearby Russia and Ukraine, the Financial Times reported.

Azerbaijan which has an investment grade of Moody's and at Fitch level, sold a benchmark 10-year bond with a five per cent yield on March 10.

The bond provided "a great diversification opportunity for investors into an economically strong and stable country, especially in the current tense geopolitical environment," senior banker in the debt capital markets at Citi, Vassily Tengayev said.

Investment banks Barclays, Deutsche Bank AG London and Citigroup Global Markets Limited were selected as managers of the government for the first Eurobond issuance.

The order book had been oversubscribed at nearly $4bn according to people familiar with the bond sale.

"The bond is likely to serve as a benchmark for Azerbaijani companies with the International Bank of Azerbaijan, the country's largest, already signalling that it may tap the Eurobond market this year," the Financial Times said.

As Trend reported earlier, IBA board Chairman, Jahangir Hajiyev said the Bank plans to issue Eurobonds in 2014 worth $500 million.

The issue of Eurobonds is justified by an increase in the bank's capital and may take place upon completion of the audit of the IBA's activity. The bonds will presumably mature in five to seven years.

Translated by S.I.
Edited by S.M.

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