OREANDA-NEWS. December 17, 2012. One of the leading corporate banks in Azerbaijan - PASHA Bank – acted as underwriter and market maker of the placement of bonds of Bank of Baku OJSC.

The total amount of the issue amounted to AZN 10 million, the maturity of unsecured securities - 3 years, coupon rate - 12% per annum with quarterly interest payment period. Totally 10,000 bonds with a nominal value of 1,000 manat per unit were issued. Placement of Bank of Baku bonds at the Baku Stock Exchange (BSE) was conducted with the participation of PASHA Capital by public subscription.

PASHA Bank’s board member and chief investment officer (CIO) Taleh Kazimov says that this is the second case in the local market, when our bank places bonds of another bank.

"Also, this is our 7th placement of bonds of companies in less than 1.5 years. PASHA Bank aims to strengthen its own position as a professional market participant, organizing issues of new issuers. This, in turn, will have a positive effect on the development of the securities market. I want to thank the teams of both banks for their work, as well as to congratulate Bank of Baku OJSC with the successful placement," Kazimov said.

Bank of Baku deputy chairman of board Zaur Garaisaev emphasized that bank he represents is actively working to diversify the portfolio of raised funds.

"The issue of bonds for AZN 10 million is one of the steps to create a balance between retail deposits and borrowed funds from financial institutions. It should be noted that the term of the bonds - 3 years, which is long enough for our market, where with such a term can be raised, in general, only deposits of individuals. This issue of bonds is the first operation of the securities market between Bank of Baku and PASHA Bank. We are glad to high trust to our bank by one of the leading investment banks in Azerbaijan. In turn, I want to thank the whole team of PASHA Bank for work done on a highly professional level. I am confident that this operation will ensure a successful future relationship between our organizations," Garaisaev concluded.

Last year, PASHA Bank issued corporate bonds of 4 issuers on the amount equivalent of AZN 70 million. Kazimov said that on 25 June 2012 it was paid off the first issue of bonds issued by UniLeasing CJSC in the amount of AZN 5 million for a period of 1.5 years, and before 21 November – a year paper of the same issuer in the same amount.

"Then the June paper was re-released on the same conditions and is currently listed by PASHA Bank on a daily basis. All of the quotations on the bonds, on which PASHA Bank is market-maker can be observed through terminals Bloomberg, Reuters, and on the BSE website," Kazimov said.

Also, in mid-2012 PASHA Bank has successfully acted as co-manager of Eurobonds totaling USD 150 million of Baghlan Group, which was the first in the case of the Azerbaijani banking market performance of a private bank as co-manager in a large issue of international bonds. The results of PASHA Bank’s wok in the investment direction are highly appreciated by the professional community, due to which the Bank was honored with prestigious international financial magazine EMEA Finance in nomination "The Best Investment Bank of Azerbaijan".