Azerbaijan has no plans to release another batch of Eurobonds this year. Finance Minister Samir Sharifov said it is not necessary at a press conference on Monday.
According to him, in 2014 Eurobonds were issued to assess the possibilities of sovereign debt repayment and access to finance of other issuers.
As you know, on March 12 the State Oil Company (SOCAR) issued Eurobonds worth $ 750 million at the rate of 6.95%. But because of the low attractiveness the planned another $ 250 million bonds were not presented to investors.
But according to the resource Global Capital, investors were not pleased with the high-yield securities of SOCAR in connection with low oil prices and the devaluation of the currency of Azerbaijan.
SOCAR issued the first Eurobonds for $ 500 million at the rate of 5.45% per cent in 2012. The second issue of bonds for $ 1 billion with a rate of 4.75% was in March 2013. -0-
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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