Azerbaijan's Finance Ministry auctions off long-term bonds

25 August 2021 18:00 (UTC+04:00)

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The Baku Stock Exchange (BSE) held an auction on the placement of long-term state bonds of the Azerbaijani Ministry of Finance, Trend reports referring to the BSE.

According to the BSE, the amount of the bonds was 10 million manat ($5.8 million) and the term of maturity – 2,548 days.

During the auction, 15 investors filed 24 bids in the price range from 82.44 manat ($48.49) with a yield to maturity (YTM) of 12.3 percent to 101.57 manat ($59.75) with the YTM of 8.2 percent.

In accordance with the decision of the finance ministry, the cut-off price of bonds reached 100.156 manat ($58.92) with the YTM of 8.47 percent, and the weighted average price – 100.457 manat or $59.09 (8.41 percent).

The total amount of applications at nominal prices amounted to 54.5 million manat ($32.06 million) while the value of placement – 15 million manat ($8.8 million) which shows an excess of demand over supply by almost four times.

The maturity date is Aug.15, 2028.

The auction participants must fulfill their obligations to purchase bonds till the end of Aug.25, 2021.

(1 USD = 1.7 AZN on Aug.25)

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