Details added (first version posted on 12:12)
Baku, Azerbaijan, Oct. 17
By Maksim Tsurkov – Trend:
Operations on bonds of Azerbaijan’s state oil company SOCAR exceeded $110 million on the secondary market, said SOCAR’s chief consultant on capital markets Ali Agaoglu.
He made the remarks addressing the conference, titled “Capital Markets of Azerbaijan: Opportunities and Prospects”, in Baku Oct. 17.
According to Agaoglu, the share of SOCAR bonds on the secondary market of corporate securities of Azerbaijan reached 77 percent for the past year, while the remaining 23 percent accounted for bonds of other issuers.
“Operations on SOCAR bonds amounted to almost $110.75 million during the year, while on bonds of other companies – exceeded $32.67 million. The demand for SOCAR bonds increased by 167 percent,” said 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.
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