By Rasana Gasimova
As a result of the first payment in 2020 organized on January 17, USD bonds of Azerbaijan’s state-owned SOCAR, which offer alternative investment opportunities for the country’s citizens and investors, once again brought their holders an income of $1.25 million.
Thus, the total income of bondholders has reached 16,250 dollars, SOCAR Capital reported.
SOCAR Capital informed that quarterly interest in the amount of $ 1.25 million has been transferred to the bondholders’ account. The quarterly interest has a nominal value of $1,000 and turnover period of five years, with an annual yield of five percent, and interest on it is paid according to a 3-month schedule.
The high demand for SOCAR bonds is a result of the fact that the volume of transactions with these securities in the secondary market has reached $185 million and the number of concluded transactions with bonds has exceeded 2,000. The bonds became the most traded corporate financial instrument on the Baku Stock Exchange, and the volume of REPO operations on them approached 34 million dollars.
Volume of remarketing operations up to $185 million, as well as the number of transactions up to 2.000, being the most traded corporate financial instrument in the Baku Stock Exchange and pass of REPO operations’ amount over $34 million are of the indicators of high demand for SOCAR Bonds.
Currently, SOCAR bond holders can receive short-term loans through REPO operations under favorable conditions, as well as obtain a manat loan with an annual interest rate of 15–16 percent by pledging bonds at the relevant bank. In this case, the bond holders do not lose their income of 5 percent and the actual interest rate of the loan, which they have obtained, reduces by 9–10 percent.
New bonds are planned to be issued this year, and preparatory work in that direction is carried out.
SOCAR is a wholly state-owned national oil company headquartered in Baku, Azerbaijan. The company produces oil and natural gas from onshore and offshore fields in the Azerbaijani section of the Caspian Sea.
The company includes such production associations as Azneft (the enterprises producing oil and gas onshore and offshore), Azerikimya (the chemical enterprises) and Azerigas (distributor of gas produced in the country), as well as oil and gas processing plants, service companies, and the facilities involved in geophysical and drilling operations.
Follow us on Twitter @AzerNewsAz