Fitch Ratings awarded on July 16 a long-term rating B- (B Minus) and the asset return rating RR4 (the average return perspectives make up, historically, 30-50%) to the private flotation of the priority non-guaranteed bonds of Tekhnika Finance B.V. The bonds mean participation in a loan, total $26 million, bear an interest of 12.75% and have a repayment term in 2009.
According to Fitch Ratings, the issue of the bonds is only aimed at financing a loan for Azerbaijan's Tekhnika Bank (TB), which has the following ratings: the long-term Emitter's Default Rating (EDR) as B- (B Minus) with a Stable forecast, the long-term EDR as B, the individual rating as D/E, the support rating as 5, and the long-term EDR support level as "no support level".
The bonds have the same terms as the Euro Bond issue, which the bank initially planned to carry out in May-June 2008.
By July 2008 TB was N4 among the Azerbaijani banks on the value of its assets; it had 6% of the entire assets of Azerbaijan's banking system. World Wines Company is the majority-stake shareholder in TB (75% of the shares). Etibar Aliyev owns 15%, and Kazimir Investment Caspian Fund owns 10%. Fitch noted the composition of the shareholding did not change in 2007, but it might change later.
The asset return ratings (RR) set up by Fitch in 2005 are a relative index evaluating the possibility of returning funds to the creditors on certain liabilities in the event of default.