Azerbaijan Assesses Growth Potential Of Bonds Of State Enterprises

It is planned to increase bond issues of state-owned enterprises(SOEs) in Azerbaijan.

According to Azernews, this is reflected in "StrategicDevelopment Plan for 2024-2026" of "Baku Stock Exchange".

According to the document, the predictable growth potential ofstate enterprise bonds is 1.3 billion manats.

For this purpose, DMs interested in bond issuance will beidentified, presentations will be held regarding the benefits ofbond issuance, the issuance procedure and requirements.

In addition, the purchasing power of the market will bedetermined before the issuance process of DMs, as well as supportfor the appropriate planning of bond issuances. DMs will becontinuously supported in planning additionalissuances/extensions.

"The main source of funding for DMs in Azerbaijan is based onstate budget allocations and bank loans, while many developing anddeveloped countries have made their capital markets a favorablesource of finance for DMs.

An active corporate bond market is essential to attractinvestors to capital markets.

The bond issue of DMs, which has a significant share in manycountries, has laid the foundation for the development of thecorporate debt market," BSE said.

Currently, among the state enterprises in the capital market arethe State Oil Company of Azerbaijan (SOCAR) (2 bond issues in theamount of 100 million USD each ), "AzerGold" CJSC (the firsttranche in the amount of 10 million USD) and "Azerbaijan CaspianSea Shipping" CJSC. (ASCO) ( US$ 100 million ) bonds are incirculation.

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