Azerbaijani bank announces amount of Eurobond debut issue
Baku, Azerbaijan, March 13
By Abbas Akhundov - Trend:
The primary volume of Pasha Bank Eurobonds issue will exceed $150 million, member of the bank`s board of directors, Taleh Kazimov told journalists on March 13.
The issue of Eurobonds is a matter of two to three years, he said."The first successful entry into the market of international loans was started with the club's line of credit which attracted $30.25 million for one year from international partners last year. This is a small amount to make the first steps for getting experience. Of course there was also a necessity for currency funding. Both the financial side and reputation were interested," Kazimov said.
The bank plans to increase this amount as part of a syndication this year, as operation volumes grow, according to board chairman.
Depending on the project, it is likely there will be a need to raise funds from the bond issue in the following two years.
"The reason we don't do it today is because to enter the bond market with a volume of less than $50 million does not make sense. Prior to this amount we can raise funds as part of a syndicate. If business in the market sees a need to attract more long term and large financial resources, I think we will start issung Eurobonds," Kazimov said.
The bank has had experience in corporate securities since late 2011. Since then, Pasha Bank has participated in 20 issues totalling $180 million. This year the bank plans to hold four transactions at $60-90 million. Some 70 percent of issuers represent the financial sector.
Pasha Bank was the first bank in Azerbaijan which began rendering market-maker services on corporate bonds.
It is a leading corporate bank in Azerbaijan. Founded in 2007, it delivers a wide range of corporate banking services including loans, transactions on the securities market, asset management and treasury services.
Pasha Bank has a head office and four branches with a staff of 221. The bank was declared Best Investment Bank of Azerbaijan as part of the Europe Banking Awards 2011 and Europe Banking Awards 2012. It was provided with the Best Private Bank in Azerbaijan premium upon World Finance in 2013.
Pasha Bank is part of the Pasha group of companies which is a large investment holding in Azerbaijan. It is widely represented in such sectors as insurance, construction, construction materials, tourism and other business areas. Kapital Bank is one of the largest banks in Azerbaijani retail market and also belongs to the Pasha group of companies.
Translated by S.I.
Edited by S.M.