Bonds of SOCAR record increase in value
By Nigar Abbasova
USD Bonds of Azerbaijan’s energy giant SOCAR that are on sale at the Baku Stock Exchange (BSE) have recorded an increase in value.
PSG Capital, which acts as a market maker of the bonds, reported that the price for the bonds increased up to $1,004-1,005.
SOCAR issued some 100,000 dollar bonds with nominal value of each $1,000 in September 2016, while the bond sale on the secondary market was launched on October 18. The annual interest rate on the bonds stands at the level of 5 percent.
The market maker also reported that the increase in value is expected to be a continuous phenomenon, as the date of the next interest payment on deposits is approaching.
The volume of purchase and sale operations in January 2017 amounted to some $16.5 million. The securities market players conducted some 82 deals on the bonds within last month.
The volume of trade on the secondary market exceeded some $50 million. Some 72 percent of the bonds purchasers are new customers, while the remaining 28 percent are holders of these bonds.
The interest on bonds is being paid once a quarter. The first payment was implemented on January 17. On the first day of payment the owners received dividends worth 1.25 million manats (over $ 684,860). Next payments are scheduled for April 17, June 17 and October 17.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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