Azerbaijan Government Makes Its Position to Conditions of Placement of Eurobonds More Precise

Business Materials 19 January 2007 17:01 (UTC +04:00)

The Azerbaijan Finance Ministry has made its work more active to issuing sovereign Eurobonds.

Trend has been informed by the Finance Ministry, that the process followed the Presidential Decree on Foundation of Fulfillment of State Budget 2007, where the issue of Eurobonds to the sum of 249 mln. AZN was envisaged.

According to the preliminary data, the Eurobonds will be issued for the term of 5 years and the interest rate up to 5%. The Government is expected to concretize its intensions and projects which are to involve the funds till the middle of 2007.

Banks cooperating with Azerbaijan proposes the country to issue Eurobonds in three stages. The first stage envisages preparing the placement itself, the second one вЂ" to study the conditions in international markets, and the third вЂ" to prepare staff for the operations with the bonds.

The final decision on the selection of a consultant to issue sovereign Eurobonds has not been taken yet. International rating agencies - Fitch Raytings, Standard & Poors, as well as City Group, the consultant of the country to involve another (the second) rating agency are offering their aid to Azerbaijan in this issue. The Government has been advised to render assistance in issuing Eurobonds of some other 20 banks (Commerz Bank, BNP Paribas, Deutsche Bank, ABN Amr, etc), JP Morgan Company.