BAKU, Azerbaijan, Apr. 24
By Fidan Babayeva - Trend:
The first repo transactions with shares in the history of the Baku Stock Exchange were carried out by Azerbaijan’s AzFinance investment company, Deputy Director of the company Farid Mammadov told Trend on April 24.
“A repo transaction with shares owned by two issuers was carried out through the mediation of AzFinance Investment Company,” deputy director said. “Participants in capital markets began to actively use the shares in short-term fundraising.”
“These repo transactions opened on February 26, 2020 while the closing date is April 24,” Mammadov added. “All obligations on these operations have already been fully settled by the parties.”
“While considering the full cycle of these operations that has already ended, that is, the time of opening obligations, the waiting period and the time of closing, it is possible to say that they passed without any difficulties thanks to the Baku Stock Exchange and the National Depository Center, which ensured the technical side of transactions," deputy director said.
Up till now, the state and corporate bonds were mainly used in repo transactions. In general, repo operations have greatly increased recently.
So, the volume of repo transactions on the BSE amounted to 612 million manat ($360 million) in 2018 and the turnover increased by 83 percent and exceeded 1.1 billion manat ($647.05 million) in 2019.
Presently, repo transactions with 23 instruments can be conducted on the BSE.
AzFinance Investment Company, founded in 2014, is an independent, private brokerage and management company in Azerbaijan.
The company has a license from the Azerbaijani State Securities Committee for carrying out brokerage activity.
(1 USD = 1.7 AZN on April 24)
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