SOCAR bonds can be used as collateral for loan
By Trend
The holders of the bonds of Azerbaijan's state oil company SOCAR will be able to obtain loans secured by these bonds, said Advisor of SOCAR on financial markets Tolga Kotan during the Second Financial and Investment forum.
This opportunity will appear in the near future, he said.
"We are negotiating in this direction with the relevant structures and hope to launch this instrument in the near future. Thus, bondholders will be able to receive loans up to 70 percent of the value of these bonds", said Kotan
These loans will be more profitable than conventional bank loans, added Kotan.
"Today, banks in the country issue loans at 25-30 percent per annum. Holders of our bonds will be able to attract loans at 15 percent per annum", noted Kotan.
The first issue of SOCAR's bonds was carried out in September 2016 in the amount of $100 million with a circulation period of five years and an annual yield of five percent.
The nominal value of each bond is $1,000.
---
Follow us on Twitter @AzerNewsAz