OREANDA-NEWS. December 8, 2009. The Azerbaijani Ministry of Finance failed to place this year’s 89th issue of T-bills (state short-term bonds) through the Baku Stock Exchange (BSE).

Simultaneously difference in profitability of the issues placed in different circulation periods remained at the level of 1.26%. Maximum difference reached 6.09% in 2009.

BSE reports that on 8 December one bidder submitted an order for AZN 350,600 to buy 5% of the announced issue with state registration number 10308922S (AZN 7 million).

The order was submitted at the price from 98.91% at face value (claim for annual profitability 2.21%).

Under Finance Ministry’s decision, the order was not satisfied. Circulation period of the T-bills issue was to be 182 days.

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 remained at the level of 1.26%.

Profitability of T-bills with circulation period of less than one year on cut-off price rose by 0.48% from 1.25% up to 1.73% as well as on weighted average price.

During this year’s auctions decline of profitability on the cut-off price still totals 2.69% and on weighted average price 1.78%. In 2008-9, decline of profitability makes 7.32% and 6.19% respectively.

As for the issue with circulation period of around one year, which was not placed, 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 still totals 3.63% and at weighted average price 3.53%. In 2008-2009, 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 1.031 million or 93.7% of this volume.

At the same time, the issues were placed in the amount of AZN 428.4 million or 38.95% 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,  10508322S for AZN 3 million for 364-day term, and 10308922S for AZN 7 million for 182-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 they were placed for AZN 20 million up to date.

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.