SOCAR to issue new bonds

The International Company of Azerbaijan SOCAR will issue new bonds for the domestic market, considering numerous requests and strong demand from investors for an extended period, Report informs, citing SOCAR

SOCAR once again provides Azerbaijani citizens with a profitable and reliable investment opportunity. Its previous bonds issued in 2016 achieved profound success in the securities market of our country and have been retaining the status of the most traded corporate securities from the first day of trading in the secondary market to the present day.

The demand for the first bonds issued in the amount of $100 million has more than doubled. The volume of transactions in the secondary market has beaten a record of $201 million. The five-year maturity of the initial bonds will expire in October this year, and bondholders will receive a total of $25 million.

The primary placement of SOCAR’s new bonds will be carried out by public offering in the form of a subscription.

The bond subscription will be initiated on September 20, 2021, the date of the Oil Workers Day celebration in our country, and continue until October 29.

Citizens of our country, local and foreign legal entities registered in Azerbaijan, and foreigners residing in the Republic of Azerbaijan based on permanent or temporary permits and non-residents can take part in the subscription. Priority in bond distribution will be given to individuals. Residents and legal entities of other countries will also be able to purchase bonds from bondholders in the secondary
market.

According to the SOCAR Capital Company, SOCAR new bonds will be issued for five years. The total volume of bonds is $100 million, at a par of $1,000.The annual rate is 4.5 %, with interest income paid on a quarterly basis.

Bond subscriptions will be registered in SOCAR bond kiosks in ASAN Service centers No 1 and 5 and investment companies carrying out activities in Azerbaijan.