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Azerbaijani issuers not interested in foreign market penetration

23 September 2008 09:36 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. Local companies, including institutions in the financial sector of Azerbaijan takes no interest in attracting funds through foreign stock market.
The State Committee for Securities said â€œRegulations for flotation and circulation of Azerbaijan-registered issuersâ€™ investment securities outside the countryâ€ were approved.
These rules regulates placement of securities abroad.
Under the Regulations, an issuer aspiring to sell its securities abroad shall seek permission from the State Committee for Securities.
However, only one issuer applied to the Committee for placement of corporate bonds abroad after the Regulations approved.
Under the Regulations, the issuer is allowed to place 70% of the stock issue outside the country while there is no limit for bonds.
Also, if the part of stocks intended for placement in Azerbaijan is not sold, they can be placed aboard.
In reality, local companies have no interest in placement of securities abroad.
Besides, the placement of corporate securities on the domestic market is declining.
The amount of corporate securities placed during January-August was AZN 125.1 million, a 35.6% year-over-year decline.
The decline in stocks placement was 45.6% on the primary market.