Another Azerbaijani bank plans to enter debt instrument market
Azerbaijan, Baku, Oct. 17 / Trend I. Khalilova /
Azerbaijani PASHA Bank plans to examine possible debt instrument issuance after obtaining an international credit rating, PASHA Bank chairman Farid Akhundov told Trend on Saturday.
"I do not exclude the possibility that the first issue of debt instruments will occur in 2013," Akhundov said.
The bank plans to get the credit rating from international rating agencies after the implementation of the three-year strategy is completed.
"Accordingly, we will begin the rating work in 2012 as a result of the implementation of the current strategy, which covers 2009-2011," the head of the bank said.
He said that PASHA Bank plans to receive the rating, at least from the two companies.
"We will think about the need for debt instrument issuance as a result of rating and our first actions in the capital market," he said. "It is unlikely to happen this year. We will closely monitor the situation and market conditions abroad to issue Eurobonds from the second half of 2012 or in a year."
Other banks stated about the plans to issue Eurobonds in Azerbaijan. But they were postponed because of the situation on foreign markets.
The International Bank of Azerbaijan stated about the placement of Eurobonds to the amount of $ 200 million, Unibank - $ 150 million, Bank Standard - $150-200 million, Texnika Bank - $ 200 million. Only Texnika Bank placed its Eurobonds in 2008. The bank has registered the company Texnika Finance BV in the Netherlands to accommodate the first issue of unsecured eurobonds. Texnika Bank was able to attract credit to the amount of $ 26 million at an interest rate of 12.75 percent and maturity date in 2009 through the bonds.
PASHA Bank was established in June 2007 and operates under license of the Central Bank of Azerbaijan dated Jan.28, 2007.
"PASHA Bank", along with Pasha Insurance, PASHA Life, Pasha Travel and Pasha Construction, is included in the Pasha Holding, which is actually an investment company, but not a classic holding company. Kapital Bank is also included in the structure of the Pasha Group. The Holding owns 99.75 percent of shares in the bank.
Pasha Bank shareholders are: PASA Holding with 60 percent of the shares, the company ADOR Ltd with 30 percent and Arif Pashayev with 10 percent.