The Baku Stock Exchange (BSE) will host an auction on placement of state medium-term bonds of the Ministry of Finance of Azerbaijan for a total of 50 million manat ($29.4 million) on January 19, 2021, Trend reports with reference to the stock exchange.
Bonds with a circulation term of 728 days and a yield to maturity (YTM) of 7 percent will be offered at the auction.
The deadline for payment on interest (if any) is July 20, 2021, January 18, 2022, July 19, 2022, and January 17, 2023, while for payment on bonds - January 17, 2023.
PASHA Capital Investment Company is an underwriter on issuing of the ministry’s state bonds.
It is allowed to accept non-competitive orders during the auction, provided that the bond issue does not exceed 20 percent. In addition, the issuer may not accept these orders if the volume of orders issued by the auction participants for the purchase of bonds is less than 20 percent of the volume of bonds issued by the issuer at the auction.
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.
For 2021, the Ministry of Finance plans to issue 17 million bonds, the amount of which is estimated at 1.7 billion manat ($1 billion).
(1 USD = 1.7 AZN on Jan.18)