BAKU, Azerbaijan, September
25. The development of capital markets can play a
significant role in the growth and diversification of Azerbaijan's
economy, as well as in expanding financing opportunities for
companies, Executive Director for Development & Agency Finance at
Standard Chartered Bank, Desislava Radeva, said during the 2nd
Azerbaijan International Investment Forum held in Baku today,
Trend's
correspondent reports from the event.


She noted that a significant portion of the population
traditionally prefers to keep their funds in bank deposits.
However, stock markets are important for wealth distribution,
increasing return opportunities for retail investors, and
diversifying investment portfolios.


"Capital markets play a major role in economic growth and
diversification. Efficiently functioning capital markets are
crucial for expanding investment portfolios, including those of
national funds," Radeva pointed out.


According to her, the development of capital markets in
Azerbaijan requires not only the activity of the Baku Stock
Exchange but also appropriate legislation and support from
government institutions.


"The Baku Stock Exchange knows very well what needs to happen.
They have their own tools and sound strategies. External factors
should also be part of the process. Proper legislation at the
national level, along with the necessary support from key
institutions and the government, can bring about real change," she
explained.


Radeva emphasized that Azerbaijan possesses significant capital
potential.


"We are talking about an Azerbaijan that is sufficiently
capitalized. There is no shortage of equity capital in the country.
It’s no coincidence that the level of national debt is very low,"
she noted.


She mentioned that the raising of funds by Azerbaijani companies
from local or international capital markets is not solely aimed at
financing new investments.


"It's also significant in terms of international reputation and
visibility, the use of shares instead of cash in mergers and
acquisitions, long-term value creation, and achieving sustained
liquidity that facilitates investor entry and exit. A proper
ecosystem must be established for this," Radeva underscored.


According to her, the development of efficient capital markets
is a long-term process.







"The London Stock Exchange is over 300 years old. Creating
efficiently functioning capital markets takes time. It’s not a
process that happens overnight. The key issue is establishing a
dialogue," the Standard Chartered representative said.


Radeva noted that Standard Chartered collaborates with
international stock exchanges in the Trans-Caspian region, Central
Asia, and other emerging markets.


She also highlighted the importance of dual-listing
opportunities between the Baku Stock Exchange and the London Stock
Exchange.


"Local investors should have the same access opportunities as
international financial institutions when major, significant IPOs
are conducted," Radeva said.


According to her, unlike investment banks and other market
participants, stock exchanges have a vested interest in the
long-term success of companies.


"We are very different from investment banks and other market
participants. We provide the infrastructure upon which the market
operates. At the same time, we are interested in the long-term
success of companies. Once an IPO is concluded, banks and lawyers
step away from the process, whereas the issuer and the exchange
remain," she noted.


Radeva stressed that it is not advisable to bring companies to
capital markets without adequate preparation.


"We never encourage companies to enter the market before they
are ready. We always focus on their success and on ensuring that
their long-term success aligns with our interests. An efficient
capital market is an environment where companies can succeed," she
added.