Azerbaijani Ministry of Finance to cut bond issuance
Baku, Azerbaijan, Jan. 21
By Azad Hasanli - Trend:
In the 1Q2019, the Ministry of Finance of Azerbaijan plans to reduce the issuance of manat bonds by almost 22 percent compared to January-March 2018, the ministry told Trend on Jan. 21.
Until April 2019, the ministry plans to place bonds worth 160 million manats, while this figure amounted to 205 million manats in the 1Q2018.
In January 2018, the ministry plans to make two placements totaling 40 million manats, in February and March - three placements with 60 million manats in each month.
The circulation period of most of the funds placed (75 million manats) will be one year. The three-year securities will account for 45 million manats and two-year securities - 40 million manats.
In 2018, the Ministry of Finance issued bonds for about 900 million manats. Almost all planned issuances were implemented, with the exception of two issuances in August - 15 and 35 million manats. The ministry decided to recognize them as failed due to insufficient demand from investors.
The ministry faced relatively low demand from investors in the 4Q2019 too. So, during the placement of bonds for 30 million manats on Oct. 23, investors submitted applications for 12.99 million manats, and for 21 million manats during the placement of bonds in the amount of 30 million manats in November. In December there were two such cases, on December 11 and 25, when the volume of funds placed was lower than planned.
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