Azerbaijan, Baku / corr. Trend I.Khalilova / On 4 June, tender proposals for appointing a manager for issuing Eurobonds and providing legal services were opened at the Finance Ministry of Azerbaijan.
The Chairman of the Tender Commission, Deputy Finance Minister of Azerbaijan, Azer Bayramov, said that tender proposals for the position of manager for issuing Eurobonds were presented by 11 companies and for providing legal services by four.
According to him, the assessment for the first position will be valuated by 11 criteria and the second by seven.
For the first position, proposals were presented by UBS, Commerz-bank, UniCredit, Lehman Bank, Deutsche Bank, ABN Amro, Morgan Stanley and JP Morgan and for the second position by Baker and LeBoeuF, Lamb, Greene
UBS offers payment of 0.125% of the cost of issue over a period of five years of placement of the Eurobonds, 0.275% for seven years, 0.3% for ten years.
Commerz-bank offers payment of 0.125% of the cost of issue over a period of five years of placement of the Eurobonds, 0.155% for seven years, 0.175% for ten years.
UniCredit offers payment of 0.075% of the cost of issue over a period of five years of placement of the Eurobonds, 0.125% for ten years.
Lehman
Is Investment is going to act as co-manager. According to the Deputy Minister, the proposals of the company do not correspond with the terms of the tender, but may be considered separately.
Credit Swiss offers payment of 0.1% of the cost of issues over a period of 5-7 or 10 years of placement of the Eurobonds, but in the case of success, 0.05% may be asked additionally.
DrezdnerBank offers payment of 0.1% of the cost of issues over period of 5-7 or 10 years of placement of the Eurobonds.
Deutsche Bank offers payment of 0.05% of the cost of issues over a period of 5 or 10 years of placement of the Eurobonds
ABN Amro offers payment of 0.2% of the cost of issue over a period of five years of placement of the Eurobonds, 0.225 % for seven years, 0.25% for ten years.
Morgan Stanley offers payment of 0.15% of the cost of issue over a period of five years of placement of the Eurobonds, 0.175 % for seven years, 0.2% for ten years.
JP Morgan offers payment of 0.095% of the cost of issue over a period of five years of placement of the Eurobonds, 0.145% for ten years.
Terms of the participants for legal services:
Baker
Arnold
Fresh Fields Bruckhaus offers to provide services up to a maximum limit in $295.000, but for $345,000 taking into consideration payments to the local partner.
LeBoeuF, Lamb, Greene
According to the tender commission, nearly one month is required to assess the proposals of the participants. The winner may be announced at the end of June, but the first Eurobonds are expected to be issued in autumn 2007.
The Presidential decree confirming the implementation of 2007 State budget envisages issuing Eurobonds in AZN 249mln.