SOCAR preparing for second release of its bonds for domestic market (PHOTO)
Baku, Azerbaijan, Oct. 17
By Maksim Tsurkov – Trend:
SOCAR Capital company plans to carry out the second release of SOCAR bonds on the domestic market, SOCAR’s chief consultant on capital markets Ali Agaoglu told reporters in Baku Oct. 17.
“We are working on the issue. It is difficult to say now when the new SOCAR bonds will be issued, but we have a plan for an emission of at least 50 million in six months,” he said.
Agaoglu did not specify in what currency the bonds will be issued, as the company will take into account the situation on the foreign exchange market.
“Meanwhile, this will depend on implementation of SOCAR projects. There is demand for SOCAR bonds, and the need from the capital market of Azerbaijan for its development,” added the chief consultant.
SOCAR started selling its bonds, worth $100 million (100,000 bonds, each worth $1,000), on Sept. 20, 2016. The sale of SOCAR bonds in Azerbaijan’s secondary market began Oct. 18.
SOCAR bonds will be in circulation until 2021, with 5 percent yield and a payment carried out once in three months.
Interest payments on SOCAR’s bonds are made according to a pre-announced schedule (January 17, April 17, July 17 and October 17). Today, the fourth interest payment will be carried out. In general, the owners of bonds will earn $5 million.
Along with Azerbaijani citizens, SOCAR bonds can be purchased by foreign individuals and legal entities on the secondary market. Currently, investors from Russia, Turkey, Georgia, Kazakhstan and citizens of other countries are among the investors in SOCAR bonds.
Follow the author on Twitter: @MaksimTsurkov