Most traded bonds in Azerbaijan market named

Baku. 6 March. REPORT.AZ/ The bonds issued by State Oil Company of the Azerbaijan Republic (SOCAR) for domestic market is the most traded investment tool in Azerbaijan securities market, Report informs.

SOCAR bonds embrace 76% of operations in Azerbaijan bond market. “PSG Kapital”, the secondary market maker for SOCAR bonds informs.

Bonds worth 38.6 mln USD or 69.7 mln AZN have been traded in Azerbaijan securities market during first two months of 2017. These deals include state bonds released by Ministry of Finance, corporate bonds and SOCAR bonds issued by State Oil Company of the Azerbaijan Republic (SOCAR) for domestic market.

Summary of first two months reveals that major part of deals in bonds market include SOCAR bonds. So that bonds worth 29.4 mln USD has been traded, which counts for 76.2% percent of total market deals. Deals including other corporate bonds and state bonds amount 7.4 mln USD and 1.7 mln USD consecutively.

In general, SOCAR bonds became most actively traded investment tool in the market after their appearance in secondary market.

Notably, SOCAR bonds has been issue in September-October of 2016. SOCAR bonds’ circulation in the secondary market started on October 17 of last year. 89.2 mln USD deals with bonds have been completed in Baku Stock Exchange since then until now (end of February). State bonds released by Ministry of Finance count for 3 mln USD, other corporate bonds for 23.1 mln USD and SOCAR bonds for 69.1 mln USD or 70.7% of overall deals.

Notably, SOCAR bonds envisaged for internal market were issue in October of last year. 5-year bonds worth total 100 million USD offer 5% annual interest rate. Interest payments for bonds are made once in three months. First interest payment was made on January 17, 2017. Next payment is scheduled to April 17. Bondholders will receive 12.5 USD per unit.

At present SOCAR bonds can be bought for 1007 USD and sold for 1001 in stock market.