Bank Eskhata plans to issue corporate bonds

18/08/2016 15:31
Asia-Plus
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DUSHANBE, August 18, 2016, Asia-Plus – The Open Joint-Stock Company (OJSC) Bank Eskhata plans to issue corporate bonds and place them in the Central Asian Stock Exchange, the head of the Bank Eskhata Board, Khurshed Nosirov, announced at the investment forum in Dushanbe on August 18.

According to him, the bank plans to issue 200,000 corporate bonds, valued at 20 million somoni, within the next few days.  The face value of one corporate bond is 100 somoni.   

An annual interest rate on the bonds will be 22 percent and the term of circulation of the corporate bonds will be two years, Nosirov noted.

“The first issuance of corporate bonds will promote development of entrepreneurship in the country and attraction of investments in Tajikistan’s economy,” said Zavqi Zavqizoda, Senior Assistant to the President for Economic Issues.

A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, mergers and acquisitions (M&A), or to expand business.  The term is usually applied to longer-term debt instruments, with maturity of at least one year.  Corporate debt instruments with maturity shorter than one year are referred to as commercial paper.

Central Asian Stock Exchange (CASE) is a new financial institute functioning in the Republic of Tajikistan. CASE was established in April 2015 as a unique platform for organized securities trading.  CASE has partnered with GMEX Technologies Limited (part of the GMEX Group), a leading provider of multi-asset exchange and post-trade technology through a business enabled partnership approach.  One of the main shareholders of GMEX Group is Deutsche Borse AG which is a leading stock exchange in Europe.

The main objectives of CASE include: formation of a friendly, transparent and reliable investment environment for local and foreign investors; creation of opportunities for additional investment attraction on more favorable conditions in the short- and long- terms; and provision of the advanced equipment for professional securities traders.

Founded in 1993, OJSC Bank Eskhata, with headquarters in Khujand, is a commercial bank, providing a full range of main banking operations. Bank Eskhata's network has 22 branch offices, 262 banking centers and 139 money transfer locations, in most parts of the country.

Bank Eskhata is Tajikistan’s fifth largest bank by assets, part-owned by the European bank for Reconstruction and Development (EBRD), and with a particular focus on SME financing and support.  

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