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 10 million manat ($5.8 million) on November 24, 2020, Trend reports with reference to the stock exchange.
The circulation term is 1,092 days.
During the auction, 5 investors submitted 6 bids in the price range from 96.13 manat ($56.55) with a yield to maturity (YTM) of 9 percent to 98.82 manat ($58.13) with the YTM of 7.95 percent per bond.
According to the decision of the Finance Ministry, the cut-off price of bonds amounted to 98.69 manat ($58.05) with the YTM of 8 percent, and the weighted average price was 98.7 manat ($58.06) with the YTM of 7.99 percent.
The total amount of orders at nominal prices amounted to nearly 29.75 million manat ($17.5 million), and the placement volume – 10 million manat.
The maturity date of the bonds is November 21, 2023.
Bidders must fulfill their obligations to acquire the bonds by Nov.25, 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. 25)
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