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SOCAR bond owners receive $ 11.6 mln preferential loan
- 08 January, 2018
- 08:11
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Baku. 8 January. REPORT.AZ/ Transactions with SOCAR bonds in the Azerbaijani securities market have reached record level in 2017.
Report informs referring to the market maker of bonds - PSG Capital, 89,230 SOCAR bonds were re-purchased in the secondary market last year.
The volume of transactions with the bonds made $ 89.5 mln. So far, total volume of transactions with SOCAR bonds amounted to $ 122.6 mln.
| Transactions with SOCAR bonds (2017) | |
| The number of traded bonds | 89 230 |
| Volume ($ mln.) | 89 535 626 |
Notably, in 2017, totally, transactions worth $ 134 mln was conducted on all securities (excluding mortgage bonds) in the securities market of Azerbaijan. In other words, SOCAR bonds consisted 66.8% of the market.
| Secondary market of bonds (2017), $ mln. | ||
| SOCAR | 89 535 626 | 66,8% |
| Other corporarive | 16 972 518 | 12,6% |
| Government bonds | 27 516 320 | 20,6% |
| Total | 134 024 464 | 100% |
The company noted that in 2017, SOCAR bonds were the most actively traded securities in the secondary market: "86.5% of the transactions on purchase and sale of securities accounted for SOCAR bonds last year. Great interest of both physical and legal persons in the bonds has led to its price increase. The price of the bonds changed between $ 1,000-1,023 last year and sales price rose to $ 1,030 at the end of the year.
Notably, repo (re-purchase) transactions with SOCAR bonds started in November last year.
Repo transactions allow bondholders to obtain a loan on preferential terms (annual 3.5-4%) by pledging their securities. Repo operations were carried out both with legal and physical persons.
| Re-purchase market (2017, in US$) | |||
| SOCAR bonds | 13 repo contracts | 11 692 646 | 57% |
| Other bonds | 20 repo contracts | 8 704 496 | 43% |
| Total | 20 397 142 | 100% |
It was stated that in 2017, interest was paid 4 times on SOCAR bonds. Bondholders gained income of $ 5 mln. within the framework of the payments made on January 17, April 17, July 17 and October 17: "Thus, SOCAR bonds were the most profitable securities in Azerbaijan for their holders. In 2018, SOCAR bondholders will be made more $ 5 mln interest payment. The first interest payment this year will be made in January".
The annual profitability of SOCAR bonds makes 5% or $ 50 per year. Interest is paid 4 times a year, every 3 months.
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