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bne October 2017 Companies & Markets I 21
with currently 13 people working on development of different technologies.”
There is, however, a downside to being a Croatia-based tech company. “Croatia, unfortunately, is still not so great a location for tech companies and startups,” says Mrvoš. “By that I don't mean that you can't work in Croatia, but the problem is that you cannot be 100% focused on your job as there are always some administrative things, weird laws and regulations... which makes things really hard sometimes.”
Despite this, Include has ambitious plans for further growth ahead. Having produced 400 benches so far, Mrvoš believes
bne:Funds
Tajikistan's international bond debut raises $500mn at 7.125%
bne IntelliNews
Tajikistan on September 7 raised $500mn from its inaugural international bond. The Eurobond priced at 7.125% for a 10-year term. The poorest state in Central Asia tapped into growing investor interest in comparatively high-yielding sovereign debt from either new or infrequent issuers, analysts said.
The Tajiks initially offered 8% on the deal but the order book soon exceeded $4bn, opening the way to a lower yield.
The proceeds will go towards financing the construction of what will be the world’s tallest dam and the region’s largest hydroelectric project, the $3.9bn Rogun project. It is expected to produce 3,600MW upon the completion of its construction in 2032, although it should start generating some power by the end of 2018 if all goes to plan.
Marcus Ashworth, a Bloomberg Gadfly columnist who was chief markets strategist at Haitong Securities in London, wrote on September 7: “As with Iraq's issue last month, the lure of higher yields and the demands of investing according to index rules look set to override conventional logic.”
it could double that number by the end of the year, as he anticipates demand will continue to grow strongly. The firm also plans to raise a new investment round; it previously raised around €465,000 in an initial funding round early this year. The additional funds will allow it to develop new products and expand the functions of the smart bench.
“What we are also targeting in the future is controlling other smart products from Steora bench,” explains Mrvoš. “[The] technology that we have developed inside Steora bench is super advanced and can be used for tens of different products and systems so we really see our opportunity to enter big new markets with new products.”
He added: This potential yield still looks pretty low. There is no guarantee the $3.9bn [Rogun] project will be completed.
It has dragged on for years, and is not expected to be fully operational until 2032. Just $200mn of financing has been put in so far. One thing for sure, though, is that country's ratio of debt to GDP would jump to 57% from 43%. Risky stuff for a tiny economy with little real industry to speak of – it's got one big aluminium plant, a lot of overseas workers' remittances, and not much else.”
Tajikistan’s foreign debt stood at $2.3bn in the first half of 2017, edging up from $2.28bn a year ago. The debt-to-GDP ratio was at 35.8% for the period, slightly below the 35.9% recorded in January-June 2016. The bond issue increases the debt-to-GDP ratio to 50%.
The Tajik government will inevitably fail to lower the level of the country’s foreign debt to below 17.3% of GDP in 2017 as officially planned. According to Tajikistan’s Strategy for Managing Government Debt programme, the country’s foreign debt must not rise above the threshold of 40% in debt-to-GDP.
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