Azerbaijan Pasha Bank to offer additional deal in 2012
Azerbaijan, Baku, Dec 21 /Trend N.Ismayilova/
The Azerbaijani Pasha Bank is planning to conclude a deal to provide a third market- maker service before the end of this year, the bank CEO Farid Akhundov told Trend on Wednesday.
"We hope that the third transaction will take place before the end of 2011. The bank has big plans to develop this line of work in 2012. Negotiating with clients is underway and we expect the transaction will be more active," Mr Akhundov said.
He added that the Pasha Bank is aimed not so much at cooperation in this area with commercial banks and other financial institutions, as on the corporate sector.
"Although we can't exclude that after the Unibank bond issue interest in the market will increase," Akhundov said.
The bond issue prospectus of Azerbaijan JSC Unibank was posted at the Baku Stock Exchange (BSE) by JSC PASHA Bank and the brokerage company Unicapital on December 20. PASHA Bank will determine the daily cost of purchase and sale of all bonds due to the market-maker status.
The Unibank bond issue prospectus was registered at $20 million manat. In the release, 400 bonds are to be issued at par value at 50 thousand manat each. The bonds' circulation term is 1080 days; interest charge term is 90 days. Income percentage of registered book-entry debentures Unibank will be 11 per cent.
The first such practice at the PASHA Bank was in the summer of 2011 when the bank delivered underwriting and market-maker services to the Unileasing company on the placement of its bonds. Bonds for a period of 17 months to the value of five million manat were placed at a 10 per cent rate. PashaBank acts as an underwriter of the placement of the release by the UniCapital Company on the Baku Stock Exchange.
PASHA Bank was established in June 2007 and operates under licence of the Central Bank of Azerbaijan dated Jan.28, 2007.
The Bank, along with Pasha Insurance, PASHA Life, Pasha Travel and Pasha Construction, is included in Pasha Holdings, 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 per cent of shares in the bank.
Pasha Bank shareholders have: PASA Holding with 60 per cent of the shares, the company ADOR Ltd with 30 per cent and Arif Pashayev with 10 per cent.
Official exchange rate on Dec 21 is 0.7864 AZN/USD