Azerbaijani cotton-processing company MKT Istehsalat-Kommersiya has sold a $5 million two-year bond, paying a fixed interest rate of 14.4% – the first example of an Azerbaijani company raising funds overseas this way.
“The deal is a unique one, as MKT is the first enterprise from Azerbaijan that has raised funds from outside the country by issuing bonds,” says Martins Jaunarajs, head of investment banking at Parex Bank, the Baltic bank that arranged the sale. “We hope that the results of this issue will be an excellent example for other companies, which may successfully raise debt funding on the EU bond market.”