Page 22 - bne_Magazine_October_2017

22 I Companies & Markets bne October 2017
In late 2016, the Tajik government launched a $490mn bail- out for some of Tajikistan’s largest banks hit by an economy blown off course by the recession in Russia and slumping oil prices. Maximilien Lambertson, Central Asia analyst at the Economist Intelligence Unit, said in comments emailed to bne IntelliNews on August 31 that the banks still remain in crisis, adding: “Tajikistan’s banking sector has been in crisis since the collapse in remittances from migrant workers in Russia
in 2015-2016.”
Nearly half of Tajikistan’s GDP is reliant on migrant workers’ remittances from Russia. While official figures show relatively stable economic growth of 6% in 1H17, the country has been facing problems posed by its ailing banking sector.
Tajikistan is rated B- by S&P and B3 by Moody’s and both deem the country as having a stable outlook.
Citigroup and Raiffeisen Bank acted as bookrunners for the bond debut.
Italian construction conglomerate Salini Impregilo won the $3.9bn contract to build the Rogun dam. The prospects for the dam, however, do not presently look too bright as only $200mn has been allocated towards the dam so far and
its construction has long been stalled. On the other hand, Uzbek President Shavkat Mirziyoyev’s coming to power in neighbouring Uzbekistan has at least temporarily put an end to disputes that contributed to the holding up of the project.
Lambertson wrote that the timescale for Rogun was "ambi- tious". "Although Salini Impregilo, the Italian firm contracted to build the dam, has stated that two of the dam's planned six turbines will start producing energy by late 2018, we believe that such a timetable is ambitious, particularly given the dam's cost, which is equivalent to almost half of 2015 nominal GDP ($8.2bn)," the analyst said. "Multilateral lenders, including the World Bank, have previously declined to provide financing for the project."
News agencies report that the bond markets have lately seen Iraq raise $1bn with a 5-year, 6.75% bond that was six times oversubscribed despite it being its first bond without a US guarantee for more than a decade. Greece, meanwhile, raised $3bn with its first issue since the onset of its debt crisis. It priced at 4.625%. Belarus took in $1.4bn from a dual-maturity 5- and 10-year tranche bond issuance that took place three months ago, with the 10-year tranche priced at 7.625%, while Ukraine is seeking investors for an inaugural dollar-denomi- nated bond.
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