Azerbaijan, Baku, Sept. 2 / Trend N.Ismayilova /
The Azerbaijani Cabinet of Ministers approved the rules for maximum bond requirements this week. The requirements do not apply to bonds issued by public authorities and municipalities.
The bond's maximum amount is calculated based on the following system:
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If Tn is the provision Mn ≤ { n-1 k*A - Σ (Bi - Ci), in other cases i=1 |
M is the planned volume of the issued unsecured bonds
T is the amount of the security of the secured bonds
k is the coefficient of the maximum emission of the unsecured bonds
Bi is the aggregate nominal value of previously placed, unpaid bonds
C I is the aggregate nominal value of the previously placed, unpaid secured bonds
n is the number of bonds, as in the process of placement, and includes both placed and unpaid
A is the issuer's total net assets
The maximum placement's regulatory coefficient for issuers placing unsecured bonds (with no long-term rating or a rating below a certain level) is equal to two.
The normative ratio is set at three for unsecured bonds rated BBB- (Standard and Poor's and Fitch), Baa3 (Moody's) or their equivalents.
The issuance of unsecured bonds by foreigners without the appropriate rating is prohibited.
In addition to the documents provided by the law, the issuer must provide the State Securities Committee with financial statements approved by an independent auditor covering the past fiscal year and a financial report for the last quarter approved by the governing entity and the chief accountant.
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