ISSUANCE OF BONDS RESTRICTED
    BAKU/02.09.10/TURAN: The government has restricted the issuance of bonds (Decree 158, August 30). The formula means restriction depending on the issuer"s net assets (capital) and the non-reimbursed part of the bonds issued before. If the issuer (resident or non-resident) has a long-term credit rating equal to or exceeding BBB- (according to Standard & Poor"s and Fitch) and Baa3 (Moody"s), the calculation will be based on the issuer"s capital multiplied by three. If the resident has a lower rating, the calculation will be based on twice the capital. If the non-resident has а lower rating, it will not be allowed to issue bonds in Azerbaijan.
     Extra information will have to be released for the official registration of issued bonds. E.g. a financial report abiding by the international standards and checked by an independent auditor will have to be submitted to the State Securities Committee along with the financial report for the latest quarter.
     The requirements abide by the Azerbaijani President"s April 20, 2010 decree that amended the Civil Code. --10В--

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