Baku. 19 September. REPORT.AZ/ Price of the only massively traded securities in Azerbaijan - bonds of the State Oil Company of Azerbaijan Republic (SOCAR) - have risen again.
Report informs citing the SOCAR Capital.
According to the PSG Capital, acting as a market maker of the bonds on secondary market, currently, the securities can be sold at $ 1,007 at stock exchange and bought at $ 1,010.
Main reason for the price rise is increasing demand for the bonds and nearing next interest payment. The annual profitability of SOCAR bonds with a nominal value of 1,000 USD makes 5% or $ 50 per year. Interest is paid 4 times a year, every 3 months. Bondholders have received interest income three times so far - on January 17, April 17 and July 17 (12.5 USD for each bond) and they were paid 3.75 mln USD in total. The next payment will be on October 17 and the investors will be paid 1.25 mln USD on that day.
Some buyers in order to get profit from interest payments try to purchase bonds before that time. That is why, sale of the bonds accelerated in recent times. Only in the last week SOCAR bonds worth over 1 mln USD traded in the secondary market.
The other reason increasing investor's interest in SOCAR bonds is the purchase guarantee and high liquidity at the nominal price by SOCAR. As a result, bonds price never fall below $1,000 and can be immediately converted into cash. Therefore, there is a great demand for SOCAR bonds among physical and legal persons.
Notably, in the secondary market, SOCAR bonds can be acquired by foreign physical and legal persons along with Azerbaijani citizens and companies. Over the past period, great interest observed by foreign investors in the securities. Currently, citizens of Russia, Turkey, Ukraine, Georgia, Kazakhstan and other countries are among foreign investors acquiring SOCAR bonds.