PASHA Bank, one of Azerbaijan’s leading banks, has successfully issued bonds for three leading Azerbaijani companies through its subsidiary, PASHA Capital. The Bank acted as underwriter and market maker in the placement of the AZN 40 million Bakcell and the AZN 12 million AccessBank bond issues. PASHA Bank also acted as market maker for UniBank’s AZN 20 million placement. PASHA Bank is also providing daily liquidity and quotations for each of these three bonds.
Bakcell, AccessBank and UniBank have issued new bonds after their previous bonds matured in December 2014. All three companies met their obligations to investors before the maturity date, which has bolstered investor confidence. As a result, Bakcell and UniBank were able to obtain better terms for their latest bond issues. Bakcell paid a coupon rate of 9% for its new bond issue, compared to the 9.5% coupon rate it paid in 2011, and UniBank was able to secure a two-year bond with a 9.75% coupon rate, in contrast to the 11% it previously paid for a three-year bond. AccessBank also increased the amount it raised in its latest bond issue to AZN 12 million from AZN 10 million, both at a coupon rate of 9%.
Taleh Kazimov, Chief Investment Officer and member of the Board of PASHA Bank, commented: “PASHA Bank has helped to place a total of 16 corporate bonds on behalf of Bakcell, UniBank and AccessBank over the years and we are pleased to be continuing our relationship with these companies. Issuing bonds with a total value of AZN 72 million is a large amount for Azerbaijan’s capital markets, and the success of these placements is evidence of how well the domestic capital markets are developing.
“Bakcell and UniBank are both enjoying lower coupon rates for their latest bond issues, as investors have become more familiar with their investment cases and confidence has grown.
“PASHA Bank always strives to protect the interests of both investors and its corporate clients when working on new bond issues. Successful placements are important for building confidence in the domestic capital markets. Helping to develop Azerbaijan’s capital markets is one of PASHA Bank’s key aims, since this will not only help to bolster investment banking activities in the country, but it will also support Azerbaijan’s economy as a whole.”