Azeri Government Delays Presentation of Debut Issue of Euro-bonds

Business Materials 15 September 2006 17:46 (UTC +04:00)

The Azerbaijani government has considered plans on presentation of a debut issue of euro-bonds under an annual meeting of the Managers of the World Bank of the International Monetary Fund (IMF) in Singapore on 16-20 September 2006. Samir Sharifov, the Azerbaijani Finances Minister told a new conference on 15 September that late issue of second sovereign rating for Azerbaijan by Moody`s Investors necessitated the correction of plans.

Therefore, the euro-bonds will be issued in 2007, unless we succeed this year, the Minister underlined.

The Minister for Economic Development, Heydar Babayev, supposes it as an important fact for issue of the second rating, which enables the country to enter the foreign capital at any moment desired. Perhaps, it would be wrong to carry out talks with foreign investors, as rating by Moody`s was publicized on 14 September 2006 Babayev underlined. .

The Ministry of Finances will act as an issuer of euro-bonds, while terms of issue will be defined after the talks with the international financial institutes.

The Finances Ministry has not set up the selection of a company which will act as organizer of the issue of euro-bonds. Meanwhile, Sharifov noted that an agreement signed with City Group, a consultant of the country on the attraction of the second rating agency, specified that in case of issue of euro-bonds will be first proposed to City Group. Obviously, it will depend on the financial terms of City Group. Moreover, a number of proposals are submitted by those desiring to assist in the issue of euro-bonds, the Finances Minister underscored.