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Azerbaijan placed its government bonds in international market for the first time

12 March 2014 15:15 (UTC +04:00)

According to Ministry of Finance, foreign investors were interested in Azerbaijan’s first bond issue. So, the volume of the issue is $1.250 bln, annual YTM – 5%, circulation period – 10 years.

This index exceeded US government securities by 2.22%. For comparison to note that Russia’s government securities have been placed with annual YTM of 2.41%, Turkey’s government securities –2.74%.

Demand for Azerbaijan’s securities exceeded supply by 4 times and attracted institutional investors of over 160 countries. According to results of the placement, most of investors were from US (47%), UK (25%), Germany (18%) and other countries (10%), as well as Singapore, Israel and etc.

To place its first government bonds in the international markets, Azerbaijani Ministry of Finance empowered syndicate consisting of Barclays, Deutsche Bank and Citi investment banks. Jointly with the investment banks syndicate, the delegation consisting of representatives of Economy and Industry Ministry, State Oil Fund of Azerbaijan and led by Finance Minister Samir Sharifov held presentations for investors in Germany, UK and US. World’s media organizations such as Bloomberg, Financial Times, Reuters and others enlightened placement of Azerbaijan’s government bonds in the international financial markets.