BAKU, Azerbaijan, July 23. As of July 1, 34.4%
of the bonds and other money market instruments held by the State
Oil Fund of the Republic of Azerbaijan (SOFAZ) were rated AA, down
12 percentage points from the same period a year earlier, according
to the Fund.


During the reporting period, SOFAZ increased the share of
AAA-rated instruments in its fixed-income portfolio to 28%, up from
21.5% a year earlier.


The Fund also raised the share of A-rated instruments to 25.3%
from 19.1%, while the share of non-investment-grade instruments
increased to 0.8% from 0.4%.


At the same time, the share of BBB-rated instruments declined to
11.5% from 12.6% a year earlier.


As of the reporting date, the maturity profile of SOFAZ's bond
and money market portfolio was as follows:




  • 14.7% with maturities of up to one year, compared with 14.8% a
    year earlier.




  • 30.1% with maturities of one to three years, up from 29.6%.




  • 26.4% with maturities of three to five years, compared with
    26.2%.




  • 28.8% with maturities of more than five years, down from
    29.4%.









As SOFAZ continues to diversify its investment portfolio, it is
also expanding its participation in international investment
platforms.


In an interview with Trend, Merlissa Trisno, Director of Funds and Capital
Partnerships at the Indonesia Investment Authority (INA),
highlighted SOFAZ's strategic role as one of the founding sovereign
investors in the Galaxy Orientis China-ASEAN Investment Platform
(CAIP).


"The State Oil Fund of the Republic of Azerbaijan plays an
important role as one of the platform's founding sovereign
investors. Its participation demonstrates the shared commitment of
three sovereign wealth funds to support long-term investment and
economic cooperation along one of the world's fastest-growing
development corridors," Trisno said.


She said CAIP brings together the financial resources,
institutional expertise and global networks of the China Investment
Corporation (CIC), the Indonesia Investment Authority (INA) and
SOFAZ to finance high-quality investment projects across the
region.


"The platform aims to contribute to regional development by
combining long-term capital, institutional expertise and global
networks to support high-quality investment opportunities," she
said.


Trisno added that the platform has secured approximately $520
million in initial funding and is targeting a total of $1 billion,
with plans to attract additional institutional investors in the
future.


"We believe the platform will, over time, provide a strong
foundation for expanding economic and investment cooperation among
Indonesia, China, ASEAN countries, Azerbaijan and other partners,"
the INA official said.