OREANDA-NEWS. February 15, 2011. The Ministry of Finance of Azerbaijan has placed today this year’s fourth issue of T-bills (state short-term bonds) at the Baku Stock Exchange (BSE).

The BSE reports that on 15 February the five auction bidders submitted the orders for totally AZN 17.824 million for purchase of 254.6% of the issue with registration number 10200431S with announced volume of AZN 7 million.

The orders were submitted at the price of 99.67% of T-bill par value (claim for profitability: 1.33% per annum) and 99.43% (2.3%).

Under Ministry’s decision, the cut-off price was set at the level of 99.6% of face value (profitability:

-16.1%) and the weighted average price 99.63%(1.49%). As a result, the issue was placed for AZN 7 million or 100% with addressing non-competitive bids at AZN 1.402 million . The issue with 91-day circulation period is scheduled for redemption for 17 May 2011.

Following the auction profitability of T-bills with circulation period of less than one year fell on the cut-off price by 0.4 points from 2.01% to 1.61% and on weighted average price by 0.52 points from 2.01% to 1.49%.

During this year’s auctions fall of profitability on  the cut-off price reaches 0.89 points and weighted average price -1.01pioints. In 2008-11, decline of profitability still makes 6.37 points and 5.4 points respectively.

As for the issue with circulation period of around one year, not placed today, its profitability on cut-off price did not change - 3.5%,  as well as on weighted average price.

In 2010, its rise on both cut-off price and average weighted price is 0.51%.

In 2008-10, decline was registered on these indicators by 7.92 points and 8.2 points respectively.

For 2011 the Finance Ministry registered an issue prospectus for AZN 400 million. Three issues for AZN 24 million have been set for trading and raised only AZN 20 million.

In 2010, the Ministry of Finance registered T-bill issue prospectus in the amount of AZN 1.1 bn and raised only a little more than AZN 236.7 million.

In 2009, the MoF planned to issue T-bills for AZN 1.1 bn but managed to place them only for AZN 432.906 million.

In 2008, the Ministry issued T-bills for AZN 1.2 bn and raised AZN 317.495 million. In 2007, the Ministry issued T-bills for AZN 280 million and raised AZN 204.889 million.