OREANDA-NEWS. On August 18, 2009 At the expense of placement of this year’s 58th issue of T-bills (state short-term bonds) through the Baku Stock Exchange the Ministry of Finance of Azerbaijan has raised AZN 12  million.

Simultaneously profitability difference of the issues placed in different circulation periods increased from 0.78 up to 1.74 %. Maximum difference in 2009 reached 6.09%.

The BSE reports that on 18 August four bidders submitted the orders for AZN 12 million for purchase of 60.023% of the announced issue with state registration number 10305822S (AZN 20 million).

The orders were submitted at the price from 98.88% at face value (claim for profitability 1.25%).
Under Finance Ministry’s decision, the orders were satisfied at the cut-off price of 98.88% (1.25%), and the weighted average price conformed to it. As a result, the issue was placed for AZN 12 million. The maturity date of the T-bills issue with circulation period of 35 days is 22 September 2009.

The auction to place T-bills 10505922S in the amount of AZN 2 million was acknowledged not to be held. One participant of the auctions submitted bid in the amount of AZN 102,400 at price of 97.57% at face value of T-bills (pretension for profitability 2.5%). The issue should have had circulation period of 364 days.

As a result, 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 dropped to 0.74 interest points.

Profitability of T-bills with circulation period of less than one year on cut-off price grew by 0.96 % – from 2.21% up to 1.25% as well as on weighted average price.

During this year’s auctions decline of profitability on the cut-off price has reached 3.16% and at weighted average price 3.65%. For 2008-9 decline of profitability has made 7.79 interest points and 6.66 points respectively.

As for the issue with circulation period of around one year, which was not placed today, its profitability on cut-off price remained at the level of 2.99% as well as on weighted average price.
During this year’s auctions growth of profitability of such bonds on the cut-off price reached 3.63% and at weighted average price 3.53%. For 2008-9 it was registered decline on these indicators by 8.43 points and 8.71 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 692 million or 62.9% of this volume.

At the same time the issues were placed for AZN 300.396 million or 43.41% 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 term, 10201522S in the amount of AZN 18 million for 91-day term, 10501622S in the amount of AZN 3 million for 364-day term, 10501920S in the amount of AZN 2 million for 364-day term, 10302122S in the amount of AZN 8 million for 182-day term, 10202422S in the amount of AZN 18 million for 91-day term, 10503522S in the amount of AZN 2 million for 364-day term, 10103422S in the amount of AZN 20 million for 35-day term, 10503922S in the amount of AZN 3 million for 364-day term, 10504322S in the amount of AZN 2 million for 365-day term, 10204822S in the amount of AZN 20 million for 91-day term, 10105022S in the amount of AZN 20 million for 35-day term and 10505922S in the amount of AZN 2 million for 364-day term.

Placement of 10206022S in the amount of AZN 15 million for 91-day term was scheduled for 21 August.

In 2009 the Finance Ministry is also planning to issue state medium-term bonds (T-notes) for AZN 0.1bn – 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 has 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.