BAKU, Azerbaijan, November 17. Azerbaijan's Unibank plans to place bonds for $12 million, Trend reports referring to the Central Bank of Azerbaijan (CBA).
The Central Bank registered a bond issue prospectus.
According to the bank, the issuance of 12,000 bonds with a par value of 1,000 manat ($588.25) and the maturity period of six years is expected. The coupon rate is estimated at eight percent per annum (coupon payments will be made every 90 days).
Funds raised from the bond placement will go to increasing Tier 2 capital and are recognized as subordinated debt.
Following the Unibank shareholders' decision, the bank capital will rise by more than 29 million manat ($17.06 million) in 2022. The first stage was completed in August, which resulted in the growth of the bank's authorized capital by almost 12 million manat ($7.059 million). The second stage involves raising capital by attracting subordinated debt. The capitalization program should wrap up by the end of 2022.
