The FINANCIAL — According to abc.az. Ministry of Finance of Azerbaijan is not refusing from perspectives of debut eurobonds issue scheduled initially for 2007 and denominated in foreign currency.
Minister of Finance of Azerbaijan informed Fineko/abc.az that they’re keep on waiting for auspicious conditions.
The Ministry mentioned high interest in debut issue of Eurobonds. Nevertheless, although issue conditions are still unfavorable, everything might change by autumn. Measures taken by the US for regulating the situation on financial markets may lead to the fact a “window” for debut Eurobonds issue of Azerbaijan may open.
Azerbaijan could receive a lower rate of profitability than it would be in summer 2007. Nevertheless, they will hardly decide on this issue in the 1st half of this year. It is oriented to maximum low spread with papers of the US Treasury House and lately spread is growing to all papers from developing markets.
In the process of debut issuing of eurobonds Azerbaijan orients not only to financial but also to political advantages.
At the same time preparing for issuing has been finished as a whole.
By the decree enforcing the Law on State Budget 2008 the country’s leader has commissioned the Ministry of Finance to continue next year preparing for debut issue of sovereign eurobonds scheduled for 2007.
Dublin Exchange is being considered as a ground for eurobonds placement.
Earlier the placement list also included Luxembourg and London exchanges.
Terms of the issue have not been established yet, but road show of Azerbaijani eurobonds will be conducted maximum within a week beforehand the issue in order to “heat” market interest.
Earlier Samir Sharifov, the finance minister of Azerbaijan, linked terms of the issue with profitable market conditions. Road show of eurobonds was scheduled for late November.
Circulation period of eurobonds is 5 years and their issue volume $500 million.
The Ministry of Finance plans road show of eurobonds in London, Frankfurt, New York, Tokyo and Singapore.
Both Deutsche Bank AG London and Citigroup Global Markets Ltd (it has been rendering international rating consulting services to Azerbaijan since September 30, 2005) are the single manager of the debut issue.
Citigroup gives legal backing and technical assistance to Deutsche Bank AG London. Arnold & Porter is the main legal adviser. Deutsche Bank is ready to organize issue of eurobonds with circulation period of 5 and 10 years for 0.05% of issue size.
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