MOSCOW – Nikolai Egorov, Director of the Non-for-Profit Partnership National Depository Centre, Russia's only settlement depository servicing the full range of Russian securities, and Bakhtiyar Asker ogly Azizov, President of CJSC National Depository Centre (Republic of Azerbaijan) have signed a Memorandum of Cooperation and a correspondence relations agreement. The ceremony took place in Baku Sept. 7 in conjunction with the 10th anniversary of NDC Azerbaijan.
Both depositories said they regarded it as necessary to broaden bilateral cooperation, which was initiated under the auspices of the Association of Eurasian Central Securities Depositories (AECSD). They committed themselves to close business relations in the exchange of information on clearing, settlement and accounting systems performance in Republic of Azerbaijan and Russian Federation, to undertake joint training and to organize work exchanges for specialists, and joint projects. They also agreed to consult one another on matters of Electronic Data Interchange and the organization of data processing and storage systems.
The parties also signed a correspondence relations agreement. By opening an account at NDC Azerbaijan, NDC Russia, as a nominee shareholder, expects to encourage Russian investors to consider the securities of Azerbaijan issuers.
Nikolai Egorov, Director, NDC Russia, said: "We welcome cooperation with our colleagues from the Republic of Azerbaijan. Attraction of foreign investment to develop enterprises is one of the priorities of economic policy for both countries. Effective cooperation by financial and infrastructural organizations, including central and settlement depositories, plays an important role in the realization of such projects."
Asker ogly Azizov Bakhtiyar, President, NDC (Republic of Azerbaijan), said: "Initially Russia was one of Azerbaijan's main economic partners, as is reflected in the close cooperation of our countries' financial institutions, including the stock market. We hope that the signed documents will create an opportunity for more active Russian investment activity in our country's economy, as well as further development of Azerbaijan's depository system."
The participants in the signing ceremony were greeted by G. Babayev, Minister of Economic Development, Azerbaijan; G.Mamedov, Chairman of the Azerbaijan State Securities Commission, as well as heads of the central securities depositories of Turkey, Luxemburg and the CIS states.
About NDC (Republic of Azerbaijan):
The National Depository Centre Closed Joint-Stock Company was founded on September 18, 1997 in accordance with the Decree of the President of Republic of Azerbaijan. The founder and the sole shareholder was the State Property Committee of the Republic of Azerbaijan. In 1999, after the the State Committee for Securities was established, it became a holder of a block of shares in NDC.
Currently NDC is Azerbaijan's central depository, as well as Azerbaijan's largest securities market registrar. Thus, within the ten years of its activity, the value of assets in storage has reached USD 922 million. The needs of 93,126 physical and legal depositors are being serviced, and 1,227 corporations have signed contracts with NDC for register maintenance. In 2006 the first branch of NDC was created in the Autonomous Republic of Nakhchivan. As of today, accounts of 26 issuers are serviced at Nakhchivan branch, with total assets of USD5 million.
In 2006 NDC signed a Global Partnership agreement with the Association of National Numbering Agencies (ANNA) and was declared the National Numbering Agency authorized to assign the international ISIN and CFI indexes to the securities of Azerbaijan issuers.
For further information about NDC Azerbaijan: www.mdm.az
About NDC:
Not-for-Profit Partnership “The National Depository Center” is the largest settlement depository in Russia, servicing the full range of equity securities of Russian issuers. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, 95% conducted in the corporate and regional bond markets, and 90% of stock exchange share transactions. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, and 95% of sub-federal and municipal bond issues. The international rating agency Thomas Murray has assigned NDC an A+ rating as a central depository. In 2006 the value of assets in storage was RUR 3.3 billion, turnover was RUR 30.7 billion, and the total number of operations 1.9 million. NDC is the largest paying agent on behalf of corporate bond issuers. It is Russia's national numerating agency, the substituting numerating agency for the CIS, authorized to assign the international ISIN and CFI indexes. It is also a member of the international accounting infrastructure, providing settlements on the global financial markets using a direct account at Clearstream Banking S.A.
Among NDC’s founders are Bank of Russia and MICEX (the founders’ shares in the propery are 46,7% и 39,3% respectively, and in the votes 50,2% и 42,3% respectively). Members include Bank of Moscow, Sberbank, International Moscow Bank, JP Morgan Bank International LLC, VTB Bank (Vneshtorgbank), Vneshtorgbank, Rossiysky Credit Bank, Evrofinans Mosnarbank, Rosbank, Gazprombank, ING Bank Eurasia, and Deutsche Bank.
For further information about NDC: www.ndc.ru, or NDC press service: +7 495 232 0910, .