BAKU, Azerbaijan, Aug.31
By Leman Zeynalova – Trend:
Circulating bonds of SOCAR Capital have been traded on the Baku Stock Exchange by investors for about four years, the company told Trend.
“In addition to the quarterly interest payments by SOCAR, investors can get income by selling their bonds at a higher price. Interest payments were made three times this year and $ 4.75 million was transferred to investors' accounts. To date, the total income of bondholders amounted to $ 18.75 million,” said SOCAR Capital.
“Proceeds from the bonds are primarily used to repurchase $ 1.75 billion worth of Eurobonds issued abroad. By issuing bonds, we first prevent the payment of millions of dollars of interest abroad every year, which is paid to our citizens instead of bringing income to foreigners, and the currency remains in our country. Secondly, SOCAR's own interest expenses are reduced and we use our funds more efficiently. And third, when the bonds were issued, our citizens converted about 80 percent of their money into dollars and kept them passively in homes and safes. This money did not bring income to the economy or its owners. The issuance of SOCAR bonds allowed to attract the money that is left out of the economy and does not benefit its owners to the active economy,” said the company.
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