Azerbaijan assesses growth potential of bonds of state enterprises

It is planned to increase bond issues of state-owned enterprises (SOEs) in Azerbaijan.

According to Azernews, this is reflected in "Strategic Development Plan for 2024-2026" of "Baku Stock Exchange".

According to the document, the predictable growth potential of state enterprise bonds is 1.3 billion manats.

For this purpose, DMs interested in bond issuance will be identified, presentations will be held regarding the benefits of bond issuance, the issuance procedure and requirements.

In addition, the purchasing power of the market will be determined before the issuance process of DMs, as well as support for the appropriate planning of bond issuances. DMs will be continuously supported in planning additional issuances/extensions.

"The main source of funding for DMs in Azerbaijan is based on state budget allocations and bank loans, while many developing and developed countries have made their capital markets a favorable source of finance for DMs.

An active corporate bond market is essential to attract investors to capital markets.

The bond issue of DMs, which has a significant share in many countries, has laid the foundation for the development of the corporate debt market," BSE said.

Currently, among the state enterprises in the capital market are the State Oil Company of Azerbaijan (SOCAR) (2 bond issues in the amount of 100 million USD each ), "AzerGold" CJSC (the first tranche in the amount of 10 million USD) and "Azerbaijan Caspian Sea Shipping" CJSC. (ASCO) ( US$ 100 million ) bonds are in circulation.