Azerbaijani Finance Ministry auctions state medium-term bonds

27 January 2021 15:36 (UTC+04:00)

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The Baku Stock Exchange (BSE) hosted an auction on placement of state medium-term bonds of the Azerbaijan Finance Ministry for a total of 20 million manat ($11.8 million) on Jan. 26, 2021, Trend reports with reference to the stock exchange.

The circulation term is 1,092 days.

During the auction, 15 investors submitted 21 bids in the price range from 93.73 manat ($55.13) with a yield to maturity (YTM) of 9.97 percent to 100 manat ($58.8) with the YTM of 7.5 percent per bond.

According to the decision of the Finance Ministry, the cut-off price of bonds amounted to 97.4 manat ($57.3) with the YTM of 8.5 percent, and the weighted average price was 97.8 manat ($57.5) with the YTM of 8.33 percent.

The total amount of orders at nominal prices amounted to over 62.5 million manat ($36.8 million), and the placement volume – 6.9 million manat ($4.05 million).

The maturity date of the bonds is Jan. 23, 2024.

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.

Auction participants must fulfill their obligations to purchase bonds till Jan. 27, 2021.