The plans of the Azerbaijani Government to issue sovereign Eurobonds in 2007 is unambiguous. According to the Government, the issue of Eurobonds at the total volume of $300 m. is expected to be carried out the next year, trend reports.
Earlier it was announced that the first issue of sovereign Eurobonds was expected at the volume $250 m., with the optimal circulation period of 5 years.
Azerbaijan` Finance Ministry will be the issuer of the Eurobonds, The terms and conditions of the issue will be determined as soon as negotiations with international financial institutes are held.
The Finance Ministry has not begun the selection of a company to be an organizer of the Eurobonds issue. Meanwhile, according to Finance Minister Samir Sharifov, the agreement signed with City Group, the consultant of the country on attraction of the second rating agency, pointed out that in case of the Eurobonds issue, just City Group will be proposed..
That will actually depend on how much the financial terms of City Group will be better. At the same time, at present a number of proposals from those who want to render their assistance to our country in its Eurobond issuing, pointed out the Finance Minister.
Taking into account the fact that Azerbaijan gained the second rating from Moody`s Investors on September 14, 2006, then it will allow the country to come out to international capital markets any moment. The postponement of the plans on the issue to the next year can be considered as a thoughtful step of the Government, since the renewed rating by Fitch Ratings to be received till the end of 2006 will allow borrowing in external markets on a more advantageous conditions.