Fixed Income. Azerbaijan Sovereigns - Good News Overlooked
The production sharing agreement (PSA) at Azerbaijan's offshore oil fields Azeri-Chirag-Guneshli (ACG) was recently extended by 25 years until 2050. The extension includes a change to the state's share in the PSA and profit oil, implies significant bonuses for Sofaz and promises to boost oil output. It is positive for the sovereign's credit profile - primarily, in the long term. But, given the vague near-term benefits, high uncertainty over future plans and poor clarity on how the news fits into existing market expectations, the bond markets have ignored what is fundamentally a positive announcement.
Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.
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