Third payment of interests on SOCAR dollar bonds realizes

Baku. 17 July. REPORT.AZ/ The State Oil Company of Azerbaijan Republic (SOCAR) carried out regular interest payments on dollar bonds.

Report was informed in the SOCAR Capital, today 12.5 dollars for each bond are transferred to bank accounts of owners of the bonds, which totally make 1.25 million dollars.

Notably, this is the third payment on SOCAR bonds. Previous payments were made on January 17 and April 17. Taking into account the last payment, investors earned $ 3.75 million over this period.

SOCAR Vice-President for Economic Affairs Suleyman Gasimov said that timely payments of interest indicate financial stability and compliance with the company's obligations: "Recently published financial indicators of SOCAR for 2016 once again showed that the company's financial position is fairly stable and reliable. SOCAR, besides acting as an active participant in the capital markets, attaches great importance to maintaining the confidence of investors who have invested their money in SOCAR bonds. Interest payments already on July 11 were transferred to the account of the National Depository Center."

Now, SOCAR bonds are the most traded financial instrument on the country's securities market. The total volume of trading operations in the secondary market exceeded $ 90 million. Only for the first 6 months of 2017 were trading operations with 51,620 bonds. On the Baku Stock Exchange, the share of SOCAR bonds accounts for 82% of operations on the secondary market for all bonds. Great interest in bonds is shown by both legal entities and individuals.

Bonds on the secondary market can also be purchased by foreign individuals and legal entities. Over the past period, there was a high interest of foreign investors in the securities of SOCAR. Among them are investors from Russia, Turkey, Ukraine, Georgia, Kazakhstan and other countries.

The main advantages of SOCAR bonds are their high liquidity and a guarantee of repurchase by the company at a nominal value of $ 1,000.

The five-year bonds of SOCAR were issued in September 2016 in the amount of $ 100 million. The initial demand for bonds from individuals and legal entities was $ 203 million, which is twice the supply. From October 17, has started the circulation of SOCAR bonds on the secondary market.

The annual yield of bonds with a nominal value of $ 1000 is 5% or $ 50 per year, interest is paid every 3 months in dollars. Interest payments on the bonds were made on January 17, April 17 and July 17. The following payments in 2017 will be held on October 17.