EBRD: Azerbaijan completed work to improve financial derivatives, securitization

Work to improve financial derivatives and securitization has been completed in Azerbaijan, and a corresponding draft law has been presented, the European Bank for Reconstruction and Development (EBRD) said, Report informs.

“In a move towards sustainable finance and the promotion of environmentally friendly investment opportunities, the basic criteria have been established to form the legislative framework for green bonds. Meanwhile, the authorities have adopted specific regulations to allow banks in Azerbaijan to provide investment services, thus expanding direct access channels,” the EBRD said.

According to the bank, work on capital markets development resulted in the country’s first initial public offering: “In May 2024, Azerbaijan’s largest bank by assets, International Bank of Azerbaijan, announced the country’s first initial public offering, which is expected to be finalized by the end of the year. The bank is offering a substantial portion of its shares to both domestic and international investors, aiming to diversify its shareholder base.”

“In 2024, the central bank enhanced requirements to improve information security in the financial sector, aimed primarily at strengthening data protection and minimising cybersecurity threats. In August 2023, the government unveiled its first five-year ‘Strategy of Azerbaijan Republic on Information Security and Cybersecurity for 2023–2027,’ which sets cybersecurity standards for the national digital space and requires enhanced personal data protection,” the EBRD emphasized.