Bond transactions in foreign currency provided 36 percent of Azerbaijan’s corporate market in 2011
Azerbaijan, Baku, March 17 / Trend A.Akhundov /
In 2011 the volume of transactions with bonds denominated in foreign currency amounted to 402.4 million manat, which represents 36 percent of Azerbaijan's corporate liabilities, the Azerbaijani government's report for 2011 approved by the Parliament on Friday said.
In 2011 a large amount of bonds denominated in foreign currencies was offered to the market. For example, last year the volume of transactions with bonds denominated in foreign currency amounted to 402.4 million manat, which represents 36 percent of corporate liabilities. During the reporting period bonds denominated in foreign currency and having the right to convert were first put into circulation, which is a new tool for the local market," the report said.
In 2011, the growth of segment of the corporate securities was provided mainly by the dynamics of instruments of corporate liabilities' market.
"In 2011 primary and secondary corporate bond market grew by 3.7 times compared to last year and amounted to 1.115 billion manat. During the reporting period an increase in interest in the possibilities of financing through debt instruments was observed. Thus, the volume of transactions in the primary market of corporate liabilities grew fourfold and amounted to 584.7 million manat," the report said.
During the reporting period deepening of the stock market continued.
"For example, during 2011 the number of transactions in the securities market increased by 14 percent compared to 2011, of their volume doubled to 1.029 billion manat," the report said.
The official exchange rate is 0.7863 to $1 on March 17.