Bonds of Azerbaijan Mortgage Fund immediately returned

Baku. 10 February. REPORT.AZ/ The bonds with value of 10 million AZN issued by Azerbaijan Mortgage Fund (AMF) were returned 12 days after reaching the primary market. 

Report informs referring to the AMF.

According to information, 10,000 bonds of AMF with par value of 1 000 AZN were issued for 3 600 days with a total annual yield of 3%. Taking into account the uncertainty in exchange rate of the Azerbaijani national currency and fluctuation of annual profitability of bank deposits around 15%, it was impossible to find investors for mortgage securities. As a way out of the situation it was decided to sell bonds to one of the country's financial institutions (reportedly PASHA Bank JSC - Report.). Straight after that according to plan Central Bank of Azerbaijan had to buy bonds and ensure liquidity for them.

Thus, on January 27, AMF's bonds were placed in Baku Stock Exchange and were sold in a primary market. On February 8, they were put up for sale and purchased by CBA. "PASHA Capital " Investment Company acted as an underwriter in the process.

Report informs citing the CBA, in accordance with the Presidential decree dated 27 October 2015 on the establishment of the AMF, the CBA supports ensuring liquidity of the Fund's bonds.