Demand for Azerbaijani AzerGold company’s bonds exceeds supply

25 September 2020 13:16 (UTC+04:00)

By Trend

The Baku Stock Exchange (BSE) held an auction on the placement of AzerGold company’s interest-bearing, unsecured, book-entry bonds worth $10 million, Trend reports citing the BSE.

Over $25 million was collected upon AzerGold company’s bonds issued upon the mass supply method in the amount of more than $10 million. Thus, the demand for bonds placed upon the competitive auction method exceeded supply by 2.5 times.

Some 40 investors submitted 88 applications for the purchase of bonds in the price range of 100 manat ($58 or four percent) - 102.86 manat ($60.5 or three percent). The bonds were issued with a circulation period of three years and at a coupon rate of four percent per annum. The issue has been divided into 100,000 bonds with a par value of $100 per security.

In accordance with the decision of the issuer, the cut-off price of the bonds was set at 100.8 manat ($59.3 or 3.71 percent), while the weighted average price at 101.75 manat ($59.8 or 3.38 percent).

The total amount of orders at par was $25.6 million while the volume of bonds placed at par was $10 million.

The indicated bonds were included in the listing in the standard market segment upon the decision of the Listing Committee of the Baku Stock Exchange.


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