Baku, Fineko/abc.az. The Ministry of Finance of Azerbaijan has failed today to place this year’s 51st issue of T-bills (state short-term bonds) at the Baku Stock Exchange. It will be the second placement of bonds this week, in case the attempt is crowned with success.

The BSE reports that on 23 July in the process of the placement of the bond issue with registration number 10105126S one bidder submitted an order for AZN 655,300 at face value that or 4.4% of the announced issue volume (AZN 15 million).

The order was submitted at the price of 99.67% (claim for profitability 1.33%).

Under Ministry’s decision, the order was not satisfied and the issue with 91-day circulation term and maturity date of 22 October 2010 was not placed.

As a result, in 2010 profitability of T-bills with circulation period of less than one year remained at the level of 1.15% as well on weighted average price.

During this year’s auctions rise of profitability on the cut-off price has totaled 0.4% and on weighted average price 0.49%. In 2008-10, decline of profitability still makes 7.87% and 6.81% respectively.

As for the issue with circulation period of around one year, that was not placed, its profitability on cut-off price kept at the level of 3.45% and on weighted average - 3.4%.

In 2010, its rise on cut-off price is 0.46% and on average weighted price 0.41%.

In 2008-10, decline was registered on these indicators by 7.97 points and 8.3 points respectively.

In 2010, the MoF registered T-bill issue prospectus for AZN 1.1 bn. It has set out 51 issues for AZN 623 million at face value on 50 issues (56.6% of the issue planned for this year) and has raised only AZN 48.429 million.

In 2009, the Ministry of Finance planned to issue T-bills in the amount of AZN 1.1 bn but managed to place them only for AZN 432.906 million.

In 2008, the MoF planned to issue T-bills for AZN 1.2 bn, but issued T-bills in the amount of AZN 385 million or 32.08% of this volume. At the same time the Ministry raised AZN 317.495 million or 82.47% of the volume set out for bids.

In 2007, the Ministry issued T-bills in the amount of AZN 280 million and planned to raise AZN 251 million or 93.9% of this volume. In fact it was placed T-bills for AZN 204.889 million or 77.9% of the set volume.

23.07.2010 16:22