BSTDB to issue first tranche of manat bonds on August 1
Baku, Azerbaijan, July 28
By Kheyraddin Nasirzade – Trend:
The Black Sea Trade and Development Bank (BSTDB) will place bonds worth 10 million manats at the Baku Stock Exchange (BSE) on August 1, 2019, Trend reports referring to the BSE.
According to the BSE, the total issue will comprise 10,000 corporate bonds with a nominal value of 1,000 manats per share.
The maturity period of the securities is 2 years (730 days), with an interest rate of 9.25 percent per annum. Payments will be made once every 3 months. The maturity of the bonds is July 31, 2021. The issue underwriter is Azerbaijan’s PASHA Capital investment company.
According to the Financial Market Supervisory Authority (FIMSA), the total amount of manat bonds, which the BSTDB plans to issue, will make up 50 million manats. Issues will be carried out in tranches during the year, and placed at the Baku Stock Exchange (BSE).
This is the first case of international financial institution issuing securities in local currency in Azerbaijan.
According to FIMSA, this will support the development of entrepreneurship in Azerbaijan, and will provide "access to long-term cheap financial resources of small and medium-sized enterprises."
Azerbaijan is one of 11 founders and members of the BSTDB since its foundation in 1997. The country's share in the bank's share capital is 5 percent, the current portfolio of the bank for projects in Azerbaijan is estimated at 53.86 million euros.
($1=1.8951 AZN on July 26)
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