Azernews.Az

By Nigar Abbasova

Azerbaijan’s state energy giant SOCAR will issue bonds for the domestic market of the country. The company will issue USD bonds for Azerbaijani citizens from September 20, the company reported.

The nominal value of each bond is $1,000. The annual bond yield is 5 percent, while interest income is not taxable and will be paid quarterly.

The bonds will be sold till October 10, 2016.

The sale of bonds will be implemented in "Asan" services №1 and №5. Citizens of the country will be able to receive interest yield in International Bank of Azerbaijan (IBA), Kapital Bank, Rabitabank, Xalq Bank.

AzFinance, InvestAZ, PASHA Kapital and PSG Kapital will act as market makers (dealer firms that assume the risk of holding a certain number of shares of a particular security in order to facilitate its trading).

SOCAR will provide thorough information during the presentation on September 16.

“One of the main objectives of placing bonds in the domestic market is diversification of financing sources as well as provision of new investment opportunities for the population,” a source in the company told Interfax. The definite volume of emission has not yet been disclosed.

The company has an experience in issuance of euro bonds for the international market. SOCAR has already implemented three issues of Eurobonds in the international market.

Back in late 2012, SOCAR's head Rovnag Abdullayev voiced plans to issue bonds of the company worth 500 million manats ($ 299 million) and place them on the Azerbaijani securities market, saying that success of the company’s corporate bonds in foreign markets allowed to plan the issue of bonds in the domestic market.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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