SOCAR’s bond issue 'important signal' to investors
Azerbaijani state oil company SOCAR's bond issue will be a very important signal to global investors, chairman of the State Securities Committee Rufat Aslanli told media on Friday.
"The presence of SOCAR on the securities market is a very positive factor," he said.
"Although the company does not conduct IPO, its presence as an issuer of bonds would be a very important signal to investors."
He said that no appeal on the bond issue was received from SOCAR.
"We had discussions with SOCAR management and reached the consensus that the company will soon enter the securities market," he said. "We assessed the possibility of absorption of the market - that is its volumes. SOCAR is able to attract resources from the domestic market. It is necessary to successfully carry out the first issue to continue this process."
He added that SOCAR is conducting preparatory work. The bonds are expected to be placed this year.
In late 2012, SOCAR head Rovnag Abdullayev voiced plans to issue SOCAR's corporate bonds to the sum of 500 million manat to be placed on the Azerbaijani securities market this year. He stressed the bonds are planned to be issued for five years.
"The funds obtained after the placement will be used for the development of promising structures and the Umid gas condensate field," he said.
"Everybody, including citizens of the country, will be able to buy the corporate bonds planned to be issued by SOCAR," he said. "I would like to encourage our ordinary citizens to buy these bonds."
The official exchange rate is 0.7846 AZN/USD on April 26.