Re-purchase operations start on SOCAR bonds

Baku. 10 November. REPORT.AZ/ For the first time in Azerbaijan securities market, regular repo (re-purchase operations) started with SOCAR bonds.

Report informs citing the PSG Capital, acting as a market maker of SOCAR bonds, SOCAR bondholder physical and legal persons can already take short-term loans using repo operations on the bonds at the Baku Stock Exchange (BSE).

Usually, repo operations duration (namely repayment term of the funds involved in frames of this operation) takes several days. According to PSG Capital, repo operations with SOCAR bonds are initially planned for 3 and 7 days. 3-day repo transactions will be carried out with 3.5% per annum and 7-day transactions at 3.75% per annum. In other words, bondholders will be able to take short-term loans (to attract funds) with 3.5%-3.75% per annum for 3-7 days, using repo transactions.

Initially, repo "window" of daily $ 2 million has been opened. $ 1 mln of this amount considered for 3-day operations, $ 1 million for 7-day operations.

Another advantage of repurchase operations for bondholders is that the funds are attracted at very low interest rates. Thus, holders of SOCAR bonds with 5% annual yield will be able to attract funds at much lower interest rates.