Profitability of Azerbaijan Finance Ministry’s T-bills Dropped
OREANDA-NEWS. June 05, 2009. At the expense of placement of this year’s 40th issue of T-bills (state short-term bonds) through the Baku Stock Exchange the Ministry of Finance of Azerbaijan raised yesterday AZN 14.8 million.
Simultaneously profitability difference of the issues placed in different circulation periods jumped from 5.98% up to 5.99%. Originally the maximum difference in 2009 reached 5.98%.
The BSE reports that on 5 June five bidders submitted orders for AZN 13.837 million for purchase of 82.43% of the announced issue with state registration number 10204022S (AZN 18 million).
The orders were submitted in price of 99.4% (claim for profitability 2.42%) up to 99.36% (2.58%). Under Finance Ministry’s decision, the orders were satisfied on the cut-off price of 99.36% (2.58%) and the weighted average price was registered at the level of 99.38% (2.5%).
As a result, the issue was placed for AZN 14.837 million.
The maturity date of the T-bills issue with circulation period of 91 days is 4 September 2009.
The size for which the profitability of T-bills with circulation period of less than one year claims for is lagging from the profitability of T-bills with circulation period of around one year grew up to 5.99%.
Compared to the previous resulting bids on T-bills, the profitability on cut-off price of the issue with circulation period of less than one year has risen by 0.07% – from 2.51% to 2.58% and on weighted average price declined by 0.01% – 2.51% to 2.5%.
During this year’s auctions decline of profitability on the cut-off price has reached 3.32% and on weighted average price 2.4%. For 2008-9 decline of profitability has made 7.75 interest points and 5.01 points respectively.
As for the issue with circulation period of around one year, which was not placed yesterday, its profitability on cut-off price remained at the level of 8.49% as well as on weighted average price.
During this year’s auctions growth of profitability of such bonds on the cut-off price reached 2.87% and on weighted average price 2.77%. For 2008-9 it was registered decline on these indicators by 1.93 points and 2.21 points respectively.
In 2009 the Ministry of Finance is planning to issue T-bills in the amount of AZN 1.1 bn and has already issued T-bills in the amount of AZN 474 million or 43.09%. At the same time the issues were placed for AZN 223.087 million or 47.06% of the volume set out for bids.
In 2009 it was not conducted placement of the T-Bills issue with registration number 10201122S in the amount of AZN 15 million for 91-day period and issues planned for placement on 3 March - 10101422S in the amount of AZN 18 million for 35-day period, 10201522S in the amount of AZN 18 million for 91-day period, and 10501622S in the amount of AZN 3 million for 364-day period, 10501920S in the amount of AZN 2 million for 364-day period, and 10302122S in the amount of AZN 8 million for 182-day term and 10202422S in the amount of AZN 18 million for 91-day term, 10503522S in the amount of AZN 2 million for 364-day term and 10103422S in the amount of AZN 20 million for 35-day term, 10503922S in the amount of AZN 3 million for 364-day term.
In 2009 the Finance Ministry is also planning to issue state medium-term bonds (T-notes) for AZN 100 million – by AZN 50 million with circulation period of two and three years. It has been issued 4 issues of T-notes with 2-year circulation period for AZN 8 million. Issue of T-notes with 3-year circulation period started since April, but it was not a success.
In 2008 the Ministry of Finance was planning 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.
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