Azerbaijani bank acquires bonds of Southern Gas Corridor CJSC

Business Materials 9 June 2017 18:31 (UTC +04:00)

Baku, Azerbaijan, June 9

By Azad Hasanli – Trend:

Azerbaijan’s Xalq Bank OJSC acquired bonds of the Southern Gas Corridor CJSC for $8 million in 2016, according to the bank’s audited financial report.

The audit was held by Crowe Horwath LLP.

In March 2016, the Southern Gas Corridor CJSC issued bonds worth $2 billion under state guarantee with a maturity period until 2026. The funds required for payments on bonds are reserved in the state budget for 2017. Eurobonds with an interest rate of 6.875 percent per year are in circulation in the Irish Stock Exchange.

Along with Eurobonds, Xalq Bank has debt securities worth 60 million Azerbaijani manats – these are the notes of the Central Bank of Azerbaijan (CBA) with a 15-percent interest rate (worth almost 40.4 million manats) and bonds of Azerbaijan’s state company SOCAR with a yield of 5 percent per year ($19.65 million).

According to the report, these securities were purchased during the past year.

Xalq Bank has been operating in Azerbaijan’s banking sector since 2004.

(1.7022 manats = $1 on June 9)