Azerbaijan's Finance Ministry puts public bonds up for auction

Finance Materials 14 February 2023 18:01 (UTC +04:00)
Kamran Gasimov
Kamran Gasimov
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BAKU, Azerbaijan, February 14. The Baku Stock Exchange has held today an auction on the placement of the Azerbaijani Finance Ministry's public bonds worth 40 million manat ($23.5 million) with a circulation period of 1,092 days, Trend reports via the exchange.

As many as 17 investors submitted 40 bids in the price range from 87.7 manat or $51.5 (11.98 percent) to 94.8 manat or $55.7 (8.9952 percent) during the auction.

In accordance with the ministry's decision, the cut-off price of public bonds was set at 92.4 manat or $54.3 (9.99 percent), and the average weighted price stood at 92.71 manat or $54.5 (9.865 percent).

The total amount of bids at nominal prices amounted to 120.73 million manat ($71.02 million), while the placement volume totaled 60 million manat ($35.2 million).

The maturity date of the bonds is February 10, 2026.

If the demand for public bonds exceeds the supply during the auction, and the price satisfies the issuer, the volume of bonds offered by the issuer can be increased up to 50 percent.

Recently, the National Depository Center (NDC) of Azerbaijan made coupon payments on the Finance Ministry's bonds as a paying agent. According to the NDC, the overall amount of payments accounted for 2.72 million manat ($1.6 million).