Interest rate of mortgage bonds in Azerbaijan to be at 3%
Azerbaijan, Baku, Dec. 26 / Trend /
Annual rate of interest-bearing book-entry registered secured bonds of Azerbaijan Mortgage Fund (AMF), operating under the Central Bank, of the sixth issue worth 40,000,000 manat, is 3%, Baku Stock Exchange reported on Wednesday.
Within previous issues, excluding the second issue (profitability at 3.25% rate), interest rate was 3% per annum.
Coupon payment period is 180 days and turnover period for mortgage bonds within the last issue is 10 years.
Within the issue 40,000 bonds with a nominal value of 1,000 have been issued. According to the issue prospectus, placement will be held by means of initial public offering at Baku Stock Exchange (BSE).
Funds obtained from placement of mortgage bonds will be directed for financing conventional mortgages.
The total volume of placement of mortgage bonds (33 million manat) this year was at the lowest level for the entire period of existence of this market. In 2009, the total volume of market for mortgage bonds was 49 million manat, in 2010, 81 million manat and 77.77 million manat in 2011.
The AMF was founded in December 2005 and began to issue mortgage loans in Azerbaijan in March 2006. In June 2007 the fund suspended the mortgage lending due to lack of financing and resumed lending in June 2009.
Mortgage loans worth more than 430 million manat have been issued through the AMF from 2006 to November 2012.
At present, AMF's authorized agents are 27 banks, 21 insurance companies and 13 appraisal organizations.
The official exchange rate on December 26 is 0.7848 AZN / USD.