Baku Stock Exchange holds auction on placement of Finance Ministry's bonds
BAKU, Azerbaijan, Nov.10
By Fidan Babayeva - Trend:
Baku Stock Exchange (BSE) held an auction on placement of short-term government bonds of Azerbaijan’s Ministry of Finance worth 15 million manat ($8.8 million), Trend reports referring to BSE.
The interest payment term is 1,092 days.
During the auction, six investors submitted 10 bids in the price range from 93.9483 manat ($55.2) with a yield to maturity (YTM) of 9.8 percent to 100.0264 manat ($58.8) with the YTM of 7.49 percent per bond.
According to the decision of the Finance Ministry, the cut-off price of bonds amounted to 99.9735 manat ($58.8) with the YTM of 7.5 percent, and the weighted average price was the same - 100.0124 manat ($58.8) with the YTM of 7.49 percent. The total amount of orders at nominal prices amounted to 50.3 million manat ($29.5 million), and the placement volume – 8.35 million manat ($4.9 million).
The maturity date of the bonds is Nov.7, 2023.
The volume of bonds offered by the issuer can be increased up to 50 percent if during the auction government bonds exceed the supply of demand and the price is satisfied by the issuer.
Bidders must fulfill their obligations to acquire bonds until Nov.11, 2020.
(1 USD = 1.7 AZN on Nov.10)
Follow the author on Twitter: @Fidan_Babaeva