OREANDA-NEWS. November 19, 2009. Simultaneously difference in profitability of the issues placed in different circulation periods declined from 1.74% to 1.34%. Maximum difference reached 6.09% in 2009.

The BSE reports that on 17 November 3 bidders submitted claims for AZN 5.003 million to buy 25.019% of the announced issue with state registration number 10108222S (AZN 20 million).

The claims were submitted at the price from 99.88% at face value (claim for annual profitability 1.25%).

Under Finance Ministry’s decision, claims were satisfied at the cut-off price of 99.88% (1.25%), and the weighted average conformed to it.

As a result, the issue was placed for AZN 5.003 million. The maturity date of the T-bills issue with circulation period of 35 days is 22 December 2009.

As a result, the size for which the profitability of T-bills with circulation period of less than one year is lagging from the profitability of T-bills with circulation period of around one year rose up to 1.74%.

Profitability of T-bills with circulation period of less than one year on cut-off price dropped by 0.48% from 1.73% to 1.25% and on weighted average price by 0.4% from 1.65% to 1.25%.

During this year’s auctions decline of profitability on the cut-off price totals 3.17% and on weighted average price 3.66%. For 2008-9 decline of profitability makes 7.8% and 6.67% respectively.

As for the issue with circulation period of around one year, which was not placed on 17 November, 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 fall of profitability of such bonds on the cut-off price totaled 3.63% and at weighted average price 3.53%. For 2008-9 decline was registered 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 954 million or 86.7% of this volume.

At the same time the issues were placed in the amount of AZN 396.897 million or 41.6% of the volume set out for bids.

In 2009 it was not conducted placement of the T-Bills issue with registration number 10201122S for AZN 15 million for 91-day period and issues planned for placement on 3 March - 10101422S for AZN 18 million for 35-day term, 10201522S for AZN 18 million for 91-day term, 10501622S for AZN 3 million for 364-day term, 10501920S for AZN 2 million for 364-day term, 10302122S for AZN 8 million for 182-day term, 10202422S for AZN 18 million for 91-day term, 10503522S for AZN 2 million for 364-day term, 10103422S for AZN 20 million for 35-day term, 10503922S for AZN 3 million for 364-day term, 10504322S for AZN 2 million for 365-day term, 10204822S for AZN 20 million for 91-day term, 10105022S for AZN 20 million for 35-day term,  10505922S for AZN 2 million for 364-day term and 10506322S for AZN 3 million for 364-day term, 10506722S for AZN 2 million for  364-day term, 10507122S for AZN 3 million for 364-day term, and 10307322S for AZN 7 million for 182-day term, 10507522S for AZN 2 million for 364-day term, 10507922S for AZN 3 million for 364-day term, 10308122S for AZN 7 million for 182-day term, and  10508322S for AZN 3 million for 364-day term.

In 2009 the Ministry of Finance also plans to issue state medium-term bonds (T-notes) for AZN 100 million – by AZN 50 million with circulation period of two and three years and callable governmental bonds for AZN 100 million.  Issue of CGBs started on 27 October 2009 and up to date they were placed for AZN 20 million.

In 2008 the MoF planned to issue T-bills for 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.