Secondary market transactions on SOCAR bonds exceed $ 100 mln

August 3, 2017 11:22

Baku. 3 August. REPORT.AZ/ A historic event has taken place in the securities market of Azerbaijan. The volume of secondary market transactions on the most demanded securities of the country's stock market - bonds of the State Oil Company of Azerbaijan Republic (SOCAR) - exceeded $ 100 mln.

Report informs citing the SOCAR Capital LLC.

Notably, SOCAR Bonds for the domestic market were released in September 2016 in the amount of $ 100 million. In other words, despite the fact that less than one year has passed since the release, volume of trading transactions on SOCAR Bonds at the Baku Stock Exchange (BSE) exceeded volume of bonds issue. This is the first such event in the history of the BSE and, in general, in the history of the stock market of Azerbaijan.

The transaction, which led to the historical fact, realized on August 2 and so, volume of transactions on SOCAR Bonds exceeded $ 100 million.

Bonds activity still continues, along with physical persons, legal entities also show great interest in the securities. Only in the first six months of 2017 year, 82% of the secondary market transactions on all bonds at the BSE accounted for SOCAR Bonds. Volume of bonds transactions is expected to increase further in the upcoming period.

Notably, SOCAR bonds envisaged for internal market were issued in October 2016. 5-year bonds worth total $ 100 million offer 5% annual interest rate. SOCAR bonds were oversubscribed more than twice ($203 mln) in first trade with participation of only local individuals and legal entities. The bonds started to circulate in secondary market since October 17.

Notably, SOCAR bonds with USD1000 nominal value offer 5% or USD 50 annual income. Interest payments for bonds are made once in three months, four times in a year. First interest payment was made on January 17, the second - on April 17, the third on July 17. The next payment will be made on October 17.

In order to purchase bonds, customers can visit "ASAN Service" facilities No.1 or No.5 and call *1999 hot line.