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Muganbank bearer securities placed at NASDAQ OMX Riga

15 April 2013 08:53 (UTC +04:00)

Baku. Vahab Rzayev – APA-Economics. 7’000 Muganbank notes with face value of USD 1’000 and total volume of USD 7’000’000 have been recorded by JSC "Latvian Central Depository" (LCD) and placed at NASDAQ OMX Riga, the Deputy Chairman of the Board of “Muganbank” OJSC Rasim Ismayilov told APA-Economics.

According to the Deputy Chairman, Muganbank has entered into an agreement with LCD to realize this initiative which will ensure its integration to EU-based financial structures.

The bank official emphasized that the agreement entitled Muganbank to place its securities at NASDAQ OMX Riga upon their duly recording by LCD. Being provided with an ISIN code by LCD, the Muganbank securities entered NASDAQ OMX Riga stock market.

LCD, who obtained the status of a securities depositary in 1995, is functioning as a central bank for securities in Latvia. Alongside with the contracted carrying out of the recording and settlement transactions of securities of other countries, LCD provides services to EU-based organizations as well.

It is worth noting that the Baltic securities market where the LCD is a participant merged with NASDAQ OMX, USA, the largest exchange group company worldwide in 2008 and gained an ample opportunity to leverage state-of-art exchange and post trading transaction technologies.

The Muganbank securities have got a diversified customer base of investors from a number of Eastern Europe countries. Rasim Ismayilov stated that the interest rate of these notes had been fixed at 11% per annum valid until 2016, the due date.

Concerning the use of the proceeds of the issuance, Rasim Ismayilov stated that the proceeds would be used for financing purposes i.e. to extend business loans to small and medium-sized enterprises and grant consumer loans to customers to meet their consumer demands.

The Deputy Chairman further stated that Muganbank attaches particular importance to cooperation with international financial institutions and continues its activities towards this.

“Muganbank” OJSC, one of the well-known participants of Azerbaijani financial-banking sector has been functioning since 1992. The Bank is actively cooperating with international financial institutions such as US Agency for International Development (USAID), European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), World Business Capital (WBC). “Muganbank” OJSC continues its high-level cooperation with leading banks of Germany, Russia, Turkey, Latvia, Austria, Kazakhstan and Ukraine. On May 14, 2012, Standard & Poor's Ratings Services raised its long-term counterparty credit rating on “Muganbank” OJSC to 'B-' from 'CCC+' and affirmed the 'C' short-term rating.