Azerbaijan placed the first Eurobond issue in the international financial market.
According to the report of the Ministry of Finance, the ten-year paper totaling 1.25 billion U.S. dollars placed with return of 5 percent per annum. Demand for bonds from investors representing more than 160 countries in the world oversubscribed four times. While 47 % of the securities purchased by investors from the U.S. , 25 % - the UK , 18 % - in Germany , 10% - from other countries , including Singapore , Israel , etc. Managers in offering the securities are the banks Barclay's, Deutsche Bank and Citi.
Turan found that , among the CIS countries, Azerbaijan became the fifth , the bill issued Euro bonds followed by Ukraine (the debut issue was made in 2006 ) Georgia (2008), Russia (2010 - the first time since 1998) and Armenia ( 2013 ) . While Armenia posted 7 year bonds with a yield of 6% , five-year Georgia - 7.5% , ten-year Russian - 4.6 % per annum.
In ministry there is no information about the purposes for which the funds were involved , but most likely they will be used to cover the budget deficit , which this year is forecast at 1.68 billion manat.
At the end of last year Azerbaijan's foreign debt was at 4.75 bn or 8.2% of gross domestic product (GDP). -15B -
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