Tag Archives: business

Investors snap up first Tajik sovereign debt issue

DUSHANBE, SEPT. 7 2017 (The Conway Bulletin) — Investors snapped up Tajikistan’s first sovereign bond issue, surprising Central Asia analysts who said the auction came with huge risk.

The $500m Eurobond issue came with a coupon of 7.125%, which analysts said was around 200 basis points more than the price paid by other frontier economies for debt. It is set to mature in 2027.

Tajikistan, considered the poorest of the Central Asian countries with an economy reliant on remittances, has said it wants to raise the cash to pay for construction of the giant Rogun Dam.
Lutz Roehmeyer, director at Landesbank Berlin Investment, invested in some of the debt.

“They don’t want to splash out the money on any nonsense, they want to build a dam and produce electricity which would be a massive boost for the local economy,” he was quoted by Reuters as saying. The Rogun dam is part of a wider project to supply electricity generated by hydroelectric power to Afghanistan and Pakistan.

Tajikistan has a reputation for corruption and analysts warned that investing in Tajikistan was a gamble. Last year, the government bailed out its commercial banks.

Max Lambertson of the EIU said yields on investment grade debt around the world were currently so poor that investors were looking at far riskier options to find profit.

“Investors typically show little interest in Tajikistan, which has a poor record with foreign investors and multilaterals,” he said.

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— This story was first published in issue 343 of The Conway Bulletin on Sept. 15 2017

Kazakhstan expels 61 Indian workers after fight

SEPT. 8 2017 (The Conway Bulletin) — Kazakhstan expelled 61 Indian workers after a fight at a construction site in Astana. The fight, with Kazakh security guards, highlights the often strained relations between migrant workers in Kazakhstan and locals. Kazakhstan’s economy now attracts labourers from across the region, including from China and India. The fight took place on the construction site of the 75-storey Abu Dhabi Plaza, set to become Central Asia’s tallest building.
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— This story was first published in issue 343 of The Conway Bulletin on Sept. 15 2017

Erdogan visits Kazakhstan, signs $590m of deal

SEPT. 9 2017 (The Conway Bulletin) — On a visit to Astana lead by Turkish President Recep Tayyip Erdogan, Turkish businesses signed deals worth $590m, Kazakh officials said according to local media. Turkish media said that investments by Turkish business in Kazakhstan now topped $2.1b. These investments are mainly in the construction sector.
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— This story was first published in issue 343 of The Conway Bulletin on Sept. 15 2017

Azerbaijan expecting decision on Absheron soon

SEPT. 14 2017 (The Conway Bulletin) — Azerbaijani state oil and gas company SOCAR expects a decision on whether to develop the offshore Absheron gas field to be made by the end of the year, a source a the company told Reuters. Absheron is seen as an important field that should boost Azerbaijan’s reputation as a major gas exporter. It was discovered in 2011 by a consortium lead by France’s Total.
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— This story was first published in issue 343 of The Conway Bulletin on Sept. 15 2017

Turkish company wins tender to build new ring road around Almaty

SEPT. 11 2017 (The Conway Bulletin) — A consortium led by Turkey’s Alsim Alarko, a unit of Alarko Holding, has won a tender to build a new ring road around Almaty, Kazakhstan’s largest city. Media didn’t give the size of the tender, which was awarded by Kazakhstan’s investment and development ministry and held in May 2016. The announcement came a couple of days after a visit by Turkish Pres. Recep Tayyip Erdogan to Astana.
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— This story was first published in issue 343 of The Conway Bulletin on Sept. 15 2017

Azerbaijan’s budget airline to extend flight routes

SEPT. 13 2017 (The Conway Bulletin) — Buta, the new low-cost airline of Azerbaijan’s state-owned AZAL, said that it intends to extend its flight routes to Russia, Turkey, Iran and Georgia. Buta made its inaugural flight to Tbilisi at the start of the month. It is based out of Baku Heydar Aliyev airport and mainly flies Embraer planes. Buta is an ornamental pattern used to decorate carpets, textiles and buildings.
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— This story was first published in issue 343 of The Conway Bulletin on Sept. 15 2017

Iran drops tax on foodstuffs to Central Asia

SEPT. 4 2017 (The Conway Bulletin) — Iran has lifted an export tax on foodstuffs being sent to Central Asia and the South Caucasus, media quoted Abdollah Mohajer, the head of Mazandaran Province Chamber of Commerce, as saying. The export tax had covered a range of products including pistachio nuts, cabbages, dates and raisins. Ditching the export tax is likely to drop the price of sending foodstuffs to Central Asia by up to 20%. Iran is increasingly trying to tap into Central Asia and the South Caucasus as natural export markets for is various products.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 342, published on Sept. 7 2017)

Kazakhstan’s Zaman Bank switches to Islamic banking

AUG. 28 2017 (The Conway Bulletin) — Kazakh bank Zaman-Bank officially switched to becoming an Islamic bank on Aug. 17, media reported, making it the second in the country after Al Hilal Bank. Islamic banking has increased in prominence in Central Asia and the South Caucasus. Banks see it as a way of differentiating themselves. Zaman-Bank has been working towards satisfying Islamic banking protocols since signing a deal with the Islamic Corporation for the Development of the Private Sector, a member of the Islamic Development Bank, in 2013.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 342, published on Sept. 7 2017)

Azerbaijan restarts gas imports from Russia

AUG. 31 2017 (The Conway Bulletin) — Russia’s Gazprom started pumping gas to Armenia again after month-long repairs to the North Caucasus-Transcaucasus pipeline that crosses Georgia were finished. The pipeline had been the only import route for gas into Armenia, although over the past couple of years Armenia has been negotiating gas supply deals with neighbouring Iran.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 342, published on Sept. 7 2017)

Kazakh minister says manufacturing sector is growing

AUG. 31 2017 (The Conway Bulletin) — Kazakhstan’s manufacturing sector has created roughly 100,000 jobs since 2010, the pro-government Astana Times newspaper reported by quoting Alik Aidarbayev, the investments minister. He said that a government funded programme was the main driver of this rise. Economists and analysts have been saying that Kazakhstan needs to diversify its economy away from oil and gas.

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 342, published on Sept. 7 2017)