Azerbaijani mortgage fund starts next placement of bonds

Photo: Azerbaijani mortgage fund starts next placement of bonds
 / Economy news

Baku, Azerbaijan, Dec. 3

By Emin Aliyev - Trend:

The placement of the third tranche of the seventh emission of non-documentary secured nominal interest-bearing bonds of the Azerbaijan Mortgage Fund started on Dec. 2, according to the Baku Stock Exchange's message.

The amount of the placement is five million manats ($6 million)

The par value of each bond is 1,000 manats ($1,274), according to the message. The bonds, with an annual rate of three per cent, will be put up for sale at a price of 100.4083 per cent of par value.

The bonds' maturity period is 10 years. The Central Bank of Azerbaijan acts as an organization involved in the initial placement of bonds.

Persons wishing to purchase the fund's bonds may apply to the BSE member organizations, which have license for brokerage activity.

On Sept. 30, 2013 the Mortgage Fund registered emission of secured bonds at the Azerbaijani State Committee for Securities (SCS). The bonds totalled 20 million manats ($25 million) with a par value of 1,000 manats ($1,274).

The maturity period is 10 years with an annual interest rate of three per cent.

On Sept. 30 the SCS registered emission of mortgage bonds worth 20 million manats ($25 million). The proceeds from placement of mortgage bonds are directed at financing of conventional mortgages.

The AMF was established in December 2005 and began granting mortgage loans in Azerbaijan in March 2006. At present, AMF's authorized banks include 28 banks. Some 21 insurance companies and 11 appraisal organizations also participate in the mortgage market.

The official exchange rate on Dec. 3 is 0.7844 AZN/USD.

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