Finance Ministry to put up medium-term bonds for auction

27 February 2021 17:35 (UTC+04:00)

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The Baku Stock Exchange (BSE) will host an auction on the placement of state medium-term bonds of the Ministry of Finance of Azerbaijan for a total of 30 million manat ($17.6 million) on March 2, 2021, Trend reports citing the BSE.

Bonds with a face value of 100 manat ($58.8) with a circulation period of 1,092 days and a yield of 7.5 percent will be offered at the auction.

Interest payment dates (if any) are set for August 31, 2021, March 1, 2022, August 30, 2022, February 28, 2023, August 29, 2023 and February 27, 2024.

The due date for the bonds is February 27, 2024.

The underwriter for the issue of government bonds of the Ministry of Finance of Azerbaijan is the Pasha Kapital investment company.

During the auction, acceptance of non-competitive orders is allowed, provided that the bond issue does not exceed 20 percent. Besides, 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 government bonds exceed the demand and the price is satisfied by the issuer, the volume of bonds offered by the issuer may be increased up to 50 percent.

In 2021, the Ministry of Finance of Azerbaijan plans to issue 17 million bonds, the amount of which is estimated at 1.7 billion manat ($1 billion).