Azerbaijan, Baku / Trend corr I. Khalilova / Azerbaijan's state Kapital Bank intends to increase their volume of corporate bonds issued for placement in foreign markets by 67%, the president of the bank, Rauf Rzayev, reported on 4 September.
The administration of the bank decided to issue securities in the sum of AZN 12mln. However, as a result of the talks with international financial institutes and foreign companies which can become underwriters for the issue, it was revealed that the sum is too small. European capital markets are interested in securities in the amount of at least AZN 20mln.
"In connection with this, we will possibly increase the sum of the bond issue," Rzayev said.
Taking into account the fact that the bank has two ratings and they are expected to be renewed by October, placement of securities at more acceptable interest rates will be possible.
The investment rating of Moody`s regarding local currency will be able to set lower profitability on the bonds in Azerbaijan's national currency than the bonds in hard currency.
According to preliminary data, the turnover period of Kapital Bank's bonds will make up 3 to 5 years, while profitability on hard currency bonds intended for placement in foreign markets is planned to be set at 9-10%.