ADB expanding co-op with Central Bank, Azerbaijan's Finance Ministry to develop capital markets

Capital market development is considered one of the most effective ways to create added value in the Azerbaijani economy, Sanan Shabanov, chief investment officer at the Asian Development Bank (ADB), said at the 20th International Caspian Investment Forum in Baku, Report informs.

He noted that as an infrastructure bank, ADB primarily directs investments toward creating added value through infrastructure in member countries: "However, to achieve sustainable development and long-term economic impact, the role of capital markets is more crucial than ever. This is why ADB's next strategy places a special emphasis on capital market development."

Shabanov noted that close cooperation in this area is being maintained both with government agencies-the Ministry of Finance and the Central Bank-and with market participants-investment companies Unicapital, ABB Invest, and others.

"Most of our activities are focused on the upstream stage, that is, improving local legislation and creating market infrastructure. Together with the Central Bank and the Ministry of Finance, we supported the creation of national credit rating agencies, as well as the improvement of existing legislation," he said.

He noted that collaboration with investment companies occurs more at the downstream stage - focused on creating successful examples in the market: "There have long been claims about low market awareness. But based on my own experience, I can say that there is sufficient awareness in the corporate sector. The IPO conducted by ABB Invest and the International Bank last year demonstrated this - more than 20,000-25,000 new investors participated in the process, becoming shareholders. This demonstrates the presence of at least 25,000 informed and investable potential investors in the market."