The first loan received on bail of SOCAR bond

Baku. 1 December. REPORT.AZ/ The first re-purchase operation (repo) with bonds of the State Oil Company of the Azerbaijan Republic (SOCAR) was carried out on Baku Exchange Stock (BSE).

Report informs referring to the market maker of bonds - PSG Capital, the owner of the bonds attracted $ 1.5 million. The means were attracted for seven-day period under 3.5%.

It is necessary to mention that regular re-purchase operations with SOCAR bonds started in November. Physical and legal persons owning the bonds may receive short-team loans using repo.

Typically, re-purchase operation takes several days. The operations with SOCAR bonds in the first places are intended for 3 and 7 days, i.e. the bond holders may receive short-term loans (attract funds) under 3.5-3.75% annual percentage rate (APR) for a period of 3-7 days using re-purchase operations. 

Each holder of SOCAR bond may participate in repo. They may receive up to 95% of the value of the bonds using them as the collateral. These deals particularly beneficial for legal persons, banks and insurance companies that need instant liquidity.