Azerbaijani Finance Ministry puts up medium-term bonds for auction
By Trend
The Baku Stock Exchange (BSE) hosted an auction on placement of state medium-term bonds of the Ministry of Finance of Azerbaijan for a total of 100 million manat ($58.8 million) on November 17, 2020, Trend reports with reference to the stock exchange.
The circulation term is 728 days.
During the auction, 11 investors submitted 18 bids in the price range from 87.87 manat ($51.72) with a yield to maturity (YTM) of 14.01 percent to 100.65 manat ($59.24) with the YTM of 6.5 percent per bond.
According to the decision of the Finance Ministry, the cut-off price of bonds amounted to 100 manat ($58.8) with the YTM of 6.85 percent, and the weighted average price was 100.03 manat ($58.88) with the YTM of 6.83 percent.
The total amount of orders at nominal prices amounted to nearly 238 million manat ($140.08 million), and the placement volume – 117.9 million manat ($69.39 million).
Maturity date of the bonds is November 15, 2022.
Bidders must fulfill their obligations to acquire bonds till Nov.18, 2020.
If during the auction the demand for government bonds exceeds the supply and the price is satisfied by the issuer, the volume of bonds offered by the issuer may be increased up to 50 percent.
(1 USD = 1.7 AZN on Nov. 17)
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