The National Bank of Tajikistan (NBT) has announced a successful debut of public equities (Eurobonds) in international financial market.
500 million U.S. dollars’ worth of equities have been put for sale for attraction of funds for completion of construction of the Roghun hydroelectric power plant.
According to the NBT press center, a working group of Tajikistan, led by the First Deputy Head of the National Bank of Tajikistan, Jamoliddin Nouraliyev, has participated in a road show to present the securities. They have reportedly met with large investors from the United States, the United Kingdom and Switzerland.
A road show is a presentation by an issuer of securities to potential buyers. The management of a company issuing securities or doing an initial public offering (IPO) travels around the country to give presentations to analysts, fund managers and potential investors. The road show is intended to generate excitement and interest in the issue or IPO, and is often critical to the success of the offering.
The Tajik delegation has reportedly carried out negotiations with more than 300 representatives from investment companies such as Goldman Sachs, Black Rock, Pimco, Morgan Stanley, Fidelity Investments, Wellington Management Group, J.P. Morgan, etc.
In the course of the negotiations, representatives of these investment companies have paid attention to a number of economic issues, including Tajikistan’s basic macroeconomic indices, economic growth trends, budget deficit volume, Tajikistan’s external debt volume, banking system situation, the pace of work and the plan of financing of the Roghun HPP, implementation of the CASA 1000 Project, reforms in the energy sector, cooperation with international financial institutions and some other issues being of mutual interest, says the NBT press center.
The press center notes that the public sales have been sold mainly to the managers of funds (85 percent), including investors form the United States (35 percent), the United Kingdom (24 percent), the European Union countries (35 percent) and Asia (3.0 percent).
To attract financial resources for construction of the Roghun HPPP by means of issuance of public equities Tajikistan has needed services of a credit rating agency. To launch Eurobonds Tajikistan has needed findings of at least two credit rating companies.
Recall, an American financial services company, Standard & Poor’s Financial Services LLC (S&P), has determined Tajikistan’s credit rating. According to the MNT, Standard & Poor's credit rating for Tajikistan stands at B3 with stable outlook.
Moody's credit rating for Tajikistan was last set also at B3 with stable outlook.
