Owners of SOCAR Bonds will earn $15 million

Oil&Gas Materials 11 October 2019 10:34 (UTC +04:00)

Baku, Azerbaijan, Oct.11


SOCAR Bonds that provide alternative investment opportunities for Azerbaijani citizens in the capital markets of Azerbaijan, will make earn its bondholders a total income of 1.25 million with 12th interest payment that will be done on October 17, Trend reports citing SOCAR Capital.

As a result, the overall income of bondholders will increase to $15 million.

According to the information given by SOCAR Capital, $1,25 million quarterly interest amount of SOCAR Bonds with a nominal value of $1000, 5 years of maturity, and 5 percent coupon paid every quarterly, has been transferred to the National Depository Centre’s account in the Central Bank.

The main features of SOCAR Bonds are its unique design to meet the investors’ needs, high profitability, high liquidity, ease of market operations (it is possible to sell bond with a value of 1 million dollars in just an hour), timely coupon payments based on pre-determined schedule and SOCAR’s warranty for repurchasing at nominal value (so far, there has been no need to carry out such operation).

SOCAR Bondholders are able to take short-terms loans through REPO operations on favorable terms or manat loans at 15-16 percent annual interest rate for 2 years from the relevant bank by collaterizing the loan with the bond in National Depository Centre. In this case, bondholders do not lose their coupon payments of 5 percent and loan interest effectively declines to 9-10 percent.

SOCAR Bonds are the most frequently traded corporate securities on Baku Stock Exchange and can be purchased from ASAN Service Centers (No.1 and 5).