BSTDB Issues the First-ever Local Currency Bond in Azerbaijan
Press Release | 02-Aug-2019
The Black Sea Trade and Development Bank (BSTDB) issued an Azeri Manat (AZN) denominated bond to further Azerbaijan’s capital market and support lending in the country’s national currency. BSTDB is the first multilateral development bank to issue a local currency bond in the country. The two-year bond for the amount of AZN 10 million (approximately EUR 5,2 million), was placed on the Baku Stock Exchange on 1 August 2019.
The BSTDB bond issuance in Manat supports the programme of the Government of Azerbaijan for de-dollarisation of the financial sector.
Pasha Bank of Azerbaijan acted as sole advisor and underwriter to the issuer.
BSTDB will use the proceeds of the bond to provide a local currency SME facility to Turanbank. By financing in Azeri Manat, BSTDB helps small and medium business in Azerbaijan to overcome all risks associated with fluctuations of foreign exchange rates.
“This first-ever AZN bond is a very important innovation, which embodies our successful partnership and continuous support from the Ministry of Finance, the Financial Market Supervisory Authority (FIMSA) and the Baku Stock Exchange (BSE). The issuance represents a major step forward in the development of the Azerbaijan domestic capital market and for diversifying the instruments that support our financing. It will help provide local currency solutions to domestic entrepreneurs and medium-sized enterprises. We are confident that this issuance will be replicated by other international financial institutions”, said Dmitry Pankin, BSTDB President.
Commenting on the issuance, Afgan Bakhishov, Acting Member of the Executive Board of FIMSA, said: “The BSTDB's local currency bond issuance assists in the development of domestic capital markets in Azerbaijan. The new bonds mark an important milestone, as for the first time IFI bonds have been issued in the country. These bond issue not only delivers local currency funding for private sector, but also maximizes BSTDB’s development impact by supporting the deployment of financial market infrastructure in Azerbaijan.”
Bahruz Naghiyev, Chief Financial Officer of PASHA Bank noted: “The very first emission of this kind is an outcome of fruitful collaboration between the Black Sea Trade and Development Bank and PASHA Bank who acted as a sole advisor and arranger for this deal. We are confident that this project will have a positive impact on sustainable development of the local securities market and will lay the foundation for a successful relationship between our organizations in the future”
“As it is known, economic reforms are being implemented in our country. The financing of Small and Medium-Sized Entrepreneurship is one of the main priorities of the government. We do believe that the issuance of Manat Bonds will give a positive impetus to the securities market in the country and facilitate the development of SMEs' access to financial resources in local currency. As a bank, we intend to contribute to the development of the non-oil sector in the country as part of this project”, said Fazail Musayev, Chairman of the Management Board of TuranBank OJSC.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. BSTDB is rated long-term “A-” by Standard and Poor’s and “A2” by Moody’s. For information on BSTDB, visit www.bstdb.org.
The Financial Market Supervisory Authority of the Republic of Azerbaijan (FIMSA) exercises licensing, regulation and supervision of capital market, investment funds, insurance brokers, credit organizations (banks, non-bank credit organization and post operator) and payment systems operations. In the capital market FIMSA ensures fair and effective functioning of the market and protects the rights of investors. One of the major objectives is to take the necessary measures for fostering the development of capital market in line with international standards.
PASHA Bank is the largest private bank in Azerbaijan by total equity. Established in 2007, the Bank offers all major financial services, including investment banking, trade financing and asset management to a range of clients, from large corporates to small and medium enterprises. The Bank particularly works closely with companies operating in the non-oil sectors of the economy, including agriculture, transportation, construction and retail, which are vital for helping Azerbaijan to diversify its economy.
PASHA Bank’s Investment Banking services cover debt and equity capital raising solutions, mergers & acquisitions advisory services, syndicated lending arrangements as well as credit rating advisory. Over the recent years PASHA Bank’s investment banking and capital markets services have been widely recognized by the expert community. Through the years of 2017 and 2018, the bank has been named the “Best Investment Bank of Azerbaijan” by the prestigious international finance publication “EMEA Finance”.
Established in 1992, TuranBank OJSC is a fully licensed bank engaged in traditional banking business.In line with its corporate strategy, along with the principles of retail banking, the Bank attaches great importance to cooperation with international financial institutions focusing on the development of micro, small and medium entrepreneurship. Currently, the bank has 16 sales networks across the country, of which, 7 of them operate in Baku and 9 in the regions. The Bank intends to contribute to the development of the non-oil sector segments like industry, agriculture, construction, commerce and service by carrying out projects to support micro, small and medium entrepreneurship.
Press contact:
Haroula Christodoulou
Phone: +30 2310 290533
E-mail: cchristodoulou@bstdb.org
Twitter: @BSTDB
