BAKU, Azerbaijan, June 7
By Zeyni Jafarov - Trend:
The interest rate announced by the Central Bank of Azerbaijan (CBA) varies within 4 percent, which is very close to the average indicator of the inflation rate announced by the CBA, Chairman of the research and investment consulting department of Unicapital OJSC Seymur Ibadov told Trend.
According to Ibadov, amid the growth of the inflationary range, a decrease in the limits of the interest rate in Azerbaijan seems unlikely.
“The capital market regulator, monitoring global and economic factors, made a decision to steadily maintain the level of interest,” Ibadov said.
Touching upon the current state of the domestic capital market, the chairman of the research and investment consulting department of Unicapital noted that following the results of the last held auction on the placement of medium-term bonds of the Ministry of Finance of Azerbaijan at the Baku Stock Exchange (BSE), there was a multiple excess of demand over supply.
“So, from the side of 23 investors, 36 orders were filed, where the range of profitability ranged from 6.81 to 13 percent. As a result, 75 million manat ($44.1 million) was placed with an average yield of 6.94 percent,” he added.
Ibadov added that at the planned auction for the placement of medium-term bonds of the Ministry of Finance of the country, the envisaged volume of orders reached 50 million manat ($29.4 million), and the total amount of applications at nominal prices was about 297 million manat ($174.7 million).
“An auction on the placement of the next tranche of medium-term bonds of the Ministry of Finance of Azerbaijan is scheduled for June 8 at the BSE, and the envisaged volume on orders is 10 million manat ($5.8 million). If the demand for government bonds in the course of trading exceeds the supply, and the price satisfies the issuer, the volume of offered bonds can be increased up to 50 percent,” the expert said.
In general, the Ministry of Finance of Azerbaijan plans to issue 17 million medium-term bonds for a total of 1.7 billion manat ($1 billion) in 2021.
(1 USD = 1.7 AZN on June 7)