Balfin Group, the largest holding in the country, will offer for the first time short-term financial instruments (commercial papers), 2 percentage points higher than government Treasury Bills. First Investment Bank is the bank and the custodian, who will carry out the collection and payment of funds. BKT has purchased the first receipts of 70 million ALL. How it works and how much is the risk?
Just as the government issues T-Bills or T-Bonds to cover its liquidity needs, private companies in Albania have begun issuing their debt instruments. Balfin Group, the largest holding in the country, will provide for the first time short-term financial instruments, which means that the group will make a promise for short-term payments, while the buyer will receive at the maturity the invested money and an interest that is 2 percentage point higher than that of T-Bills (currently 12-month bond interest rates are 1.2%, 6-month 0.95% and 3-month 0.9%). The strategy is for Balfin to issue long-term debt instruments and in the foreseeable future to be listed on the stock exchange, where there will be even greater opportunities for providing alternative means not only of financing but also of investment. The group sees listing on a regional stock exchange as a must. Balfin Group had an annual turnover of about 500 million EUR in 2015, with investments in over 10 countries around the world.
In the world, rising capital through financial instruments is highly developed for companies, while in Albania they are not used for a variety of factors, such as the lack of a developed capital market, high informality, and relatively low level of company development. But as bank lending is tightened on one hand, and some large groups are developing and seeking more alternatives on the other hand, the first phases of the capital market are being shaped in Albania, although the stock market is still lacking behind.