Bonds of SOCAR record increase in value
By Nigar Abbasova
Bonds of Azerbaijan’s energy giant SOCAR that are on sale at the Baku Stock Exchange (BSE) continue to see a rise in value.
SOCAR reported that the sale price of the bonds rose in the stock, recording an increase of 2.5 percent. The nominal value of each bond stands at $1,000, while the current price amounts to $1,025.
The value earlier increased by 1.7 percent and stood at 1,018 on November 2. Transactions worth some $5.14 million have been implemented in the in the trade system of the stock since October 18.
The annual interest rate on SOCAR’s bonds stands at the level of 5 percent. The figure is higher than the rates applied in reference to USD deposits placed in banks, where the annual interest rate on dollar deposits currently stands at 2.5-3 percent. The interest on bonds is being paid once a quarter.
The sale of SOCAR’s bonds on the secondary market was launched on October 18. PSG-Kapital acts as a marketmaker of bonds (broker-dealer firm that assume the risk of holding a certain number of shares of a particular security to facilitate its trading).
Purchase and sale of obligations may be implemented in ASAN Services № 1 and №2, as well as in investment companies that are BSE-members.
The company earlier announced its plans to implement the second issuance of bonds in 2017, the interest rate on the second emission is expected to be set at a level below five percent.
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