U.S. investors purchase nearly half of Azerbaijan’s sovereign Eurobonds
Baku, Azerbaijan, March 12
By Emin Aliyev - Trend:
Investors from the U.S. purchased 47 percent of Azerbaijan's sovereign Eurobonds, Azerbaijani Finance Ministry told Trend on March 12.
"The demand for placement exceeded the placement's volume by four times and drew the attention of investors from 160 countries. British investors purchased 25 percent of bonds, investors from Germany - 18 percent, and the remaining 10 percent bonds were purchased by buyers from other countries, including Singapore and Israel," the ministry said.
The ministry considers the placement successful.
"Profitability of the emission stood at 222 basis points (b.p.) to U.S. Treasuries. For comparison, the yield on similar bonds of the Russian Federation, which has a higher credit rating and experience in the securities issue, is 241 b.p., on Turkey's bonds - 274 b.p.," the ministry said.
The first-ever Eurobond placement in Azerbaijan was held on Monday.
The placement volume was $ 1.25 billion, maturity - ten years, with a yield of five percent.
Investment banks - Barclays, Deutsche Bank AG London and Citigroup Global Markets Limited were selected the managers for implementation the first Eurobonds emission.
Last week, a delegation headed by Azerbaijani Finance Minister Samir Sharifov, including representatives of the Economy and Industry Ministry and the State Oil Fund of Azerbaijan (SOFAZ) held presentations together with a syndicate of investment banks for investors in Germany, UK and the USA.
"The placement of Azerbaijan's sovereign bonds among numerous investors from different parts of the world, as well as multiple excess of demand over supply, suggests that the country is perceived by global stock markets as an economically and politically strong and stable country, and this is a clear example of the growth of Azerbaijan's role in the world economy," the ministry said.
Translated by E.A.
Edited by C.N.