Azerbaijani Finance Ministry’s securities in great demand at Baku Stock Exchange

By Trend

The Baku Stock Exchange (BSE) held an auction on the placement of short-term bonds of the Azerbaijani Ministry of Finance in the amount of 20 million manat ($11.8 million) on January 12, 2021, Trend reports on Jan. 12 citing the BSE.

The term of maturity is 364 days.

During the auction, 16 investors filed 27 bids in the price range from 90.93 manat ($53.48) with a yield to maturity (YTM) of 10.03 percent to 94.55 manat ($55.61) with a YTM of 5.79 percent.

According to the decision of the CBA, the cut-off price of bonds amounted to 94.39 manat ($55.52) with the YTM of 5.98 percent, and the weighted average price – 94.42 manat or $55.54 (5.93 percent). The total amount of orders at nominal prices amounted to over 98 million manat ($57.64 million), and the volume of placement is 30 million manat ($17.64 million).

The maturity date is January 11, 2022.

The volume of bonds offered by the issuer can be increased up to 50 percent if during the auction state bonds exceed the supply of demand and the issuer is pleased with the price.

Participants in the auction must fulfill their obligations to purchase bonds till January 13, 2021.

(1 USD = 1.7 manat on Jan. 12)

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