BAKU, Azerbaijan, January 27. Baku Stock
Exchange (BSE) has completed a trade of manat-denominated bonds
issued by the European Bank for Reconstruction and Development
(EBRD) on the secondary market, totaling 3 million manat ($1.76
million), BSE Management Board Chairman Ruslan Khalilov told
Trend.


In an interview with the agency, Khalilov also highlighted the
launch of trading in EBRD’s manat-denominated floating-rate bonds
on the BSE, calling it a highly significant development.


“This is the first issuance by an international financial
institution in both local currency and floating-rate note format.
There has even been a transaction on the secondary market, with an
operation amounting to around 3 million manat ($1.76 million).


Another benefit of trading EBRD’s floating-rate manat bonds is
that, although it may be early, this could eventually lead to
interest rate swap transactions. At the very least, the market now
has a floating-rate bond as a first step, which did not exist
before. This was a very important step,” he explained.


According to Khalilov, negotiations are currently underway with
several other international financial institutions regarding bond
issuances.







“International development banks are interested in issuing in
local currency, as this allows for more effective management of
'currency risk.' Many international financial organizations with
which we are in contact are interested in issuing bonds on the Baku
Stock Exchange.



We see such practices in neighboring countries. However, it
would not be correct to say which institution will issue and when.
I would say that almost all international development banks
operating in Azerbaijan are interested in issuance. At the very
least, because as development banks, the most suitable solution for
them is to issue bonds in local currency at their own risk levels
and then channel the proceeds into local strategic projects, also
in local currency,” Khalilov said.


He noted that the exchange actively engages with these
institutions, invites them to meetings, and provides information
about the domestic market.


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