Azerbaijan Railways to issue $30 million in bonds

Azerbaijan Railways CJSC is preparing to place bonds worth $30 million on the Baku Stock Exchange (BSE).

According to Report, the issue involves 300,000 interest-bearing, registered, unsecured, uncertificated bonds, each with a nominal value of $100.

The securities will be placed through subscription and will circulate for 60 months. Their annual yield is set at 7%, with interest payments made quarterly.

The underwriter of the process is ABB-Invest Investment Company CJSC. In addition, individuals wishing to purchase the bonds may also apply to other investment companies that are members of the BSE.

The issuer does not plan to repurchase the securities during the circulation period.

Funds raised from the bond placement will be used to purchase seven mainline locomotives ($25.935 million) and cover 20% VAT and customs clearance costs ($5.187 million).