Baku Stock Exchange (BSE) will hold an auction on placement of state, interest-bearing and medium-term bonds of Azerbaijan’s Ministry of Finance worth 50 million manat ($29.4 million) on March 9, 2021, Trend reports referring to a source in the BSE.
Bonds with a face value of 100 manat ($58.8), a circulation period of 728 days and a yield of 7 percent will be offered.
The interest (if any) payment dates are September 7, 2021, March 8, 2022, September 6, 2022 and March 7, 2023.
The deadline for payment on the bonds is March 7, 2023.
PASHA Capital Investment Company is an underwriter on issuing of the ministry’s state bonds.
During the auction, acceptance of non-competitive orders is allowed if the bond issue doesn’t exceed 20 percent.
Besides, the issuer may refuse from accepting 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.
The volume of bonds offered by the issuer can be increased up to 50 percent if during the auction government bonds exceed the supply of demand and the price is satisfied by the issuer.
For 2021, the Ministry of Finance plans to issue 17 million bonds amounting to nearly 1.7 billion manat ($1 billion).
(1 USD = 1.7 AZN on Mar.7)
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