SOCAR unveiled how guarantee for its bonds works - VIDEO

Baku. 31 January. REPORT.AZ/ SOCAR revealed how the guarantee for most massive securities in Azerbaijan - SOCAR bonds works. Report informs, SOCAR unveiled a guarantee mechanism for its bonds and the way it protects owners.

Thus, the bond issuer guarantees buyback with determined price after some period, for example 5 years. The bonds are sold and purchased in the market until that time and their price changes.

Specifically, if the bond owner wants to sell them prematurely, he can sell not to issuer itself, but other buyers in the market with current prices. It means, the bond owner may lose money even if he finds buyer.

SOCAR bonds protect buyers from such complications, as it can be sold back to the issuer any time with its initial price - 1000 USD. It means:

1.Buyer can sell the bonds any time,

2.Their price will never drop under 1000 USD. In addition, the owner will gain interest income.

Notably, SOCAR issued bonds worth 100 million USD in October 2016. 5-year securities bring to owners 5% annual income. Interests are paid once in three months. First 1.25 million USD were transferred to owners’ accounts on January 17. 

Next interest payments have been scheduled to April 17, July 17, October 17.