Azerbaijan, Baku / Trend corr A. Badalova / On 16 November 2007, Unibank settled its debut currency bond issue series AZ200400202 worth $5mln in the aggregate with the par value per bond $1000; the bonds were issued for 1 year's circulation and had carried the annual interest equalling 13.8%.
The bonds sold out in three auctions on 21 November 2006, and on 15/16 February 2007; remarkably, the bonds were sold for the current price accounting for 103.34% of the par value at the two latest auctions.
'This issue was the Bank's first experience in issuing currency bonds and the practice showed that the solution that the Bank had made was fortunate," said Mamedali Teymurov, the Treasury Manager with Unibank, "The outcome of the first auction day ensuring the placement of 60% of the declared issue total manifested investors' intense interest in the securities issued by Unibank. The subsequent trade and the quoted price sales only confirmed the high demand for the bonds of Unibank."
Unibank is active in the domestic securities market of Azerbaijan; it trades in the T-bills, the Notes of the National Bank and in corporate bonds and shares. The dealer and the broker licences that the Bank possesses enable it also to offer its customers the service of placing and buying securities.
"In this connection, the issue of Unibank's own bonds did not only serve the cause of expanding the service range but also stimulated our operations in the national stock market," Mr Teymurov commented.