OREANDA-NEWS. October 30, 2009. Issue of callable government bonds (CGBs) launched by the Ministry of Finance of Azerbaijan on 27 October bears experimental character.

According to the CGB issue prospectus, this year the Finance Ministry can issue only 500,000 such bonds for AZN 100 million at ace value.

On 27 October, the MoF conducted placement of its one-year CGBs with state registration number 10500124S at the Baku Stock Exchange.

The Ministry placed the issue fully (for AZN 20 million at face value) at the price of 100.00% (profitability: 5.00%) and thereby implemented 20% of the issue for the year.

CGBs is the second type of the MoF securities. And their issue is placed more successfully than the state medium-term bonds (T-Notes) that are in quite frankly unpopular demand.

In 2009, the Ministry of Finance is planning to issue T-bills (state short-term bonds) in the amount of AZN 1.1 bn and has already issued T-bills in the amount of AZN 881 million or 80.09% of this volume.

At the same time the issues were placed for AZN 381.795 million or 43.3% of the volume set out for bids.

In 2009, the Ministry of Finance also plans to issue state medium-term bonds (T-notes) for AZN 0.1 bn – by AZN 50 million with circulation period of two and three years. Four issues of T-notes have been issued with 2-year circulation period for AZN 8 million. Issue of T-notes with 3-year circulation period has started since April.

In 2008 the MoF planned to issue T-bills in the amount of 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.