BSTDB might issue second tranche of manat bonds

The Black Sea Trade and Development Bank (BSTDB) is exploring issuance of the second tranche of manat bonds in 2020, BSTDB President Dmitry Pankin told Report.

He said they intend to support sustainable development of securities market in Azerbaijan, meet the demand of the local market, as well as small entrepreneurs for manat: "Depending on the specific need for financing in national currency, we are discussing the issuance of the second tranche of manat bonds in 2020."

On August 1, 2019, BSTDB issued bonds with the face value of AZN 1,000, quantity of 10,000 and amount of AZN 10,000,000 and placed in Baku Stock Exchange (BSE). Shareholders submitted 63 applications worth AZN 81 million. So the demand exceeded the supply 8-fold.

The maturity period of the securities is 2 years (730 days), with an interest rate of 9.25 percent per annum. Payments are made once in three months. The maturity of the bonds is July 31, 2021.