A million-dollar income – Next coupon payments on SOCAR Bonds


April 17, Fineko/abc.az. SOCAR Bonds – the mostly wanted securities, offering an alternative investment opportunity for citizens paid the investors interest payments amounting 1 million 250 thousand USD as the 14th coupon payment on April 17th. With this, the total interest income of the bond holders increased to 17 million 500 thousand USD.     

According to SOCAR Capital, the quarterly interest payment at amount of 1.25 million USD has already been transferred to the accounts of the bond owners. SOCAR Bonds has a nominal value of 1,000 USD, maturity of 5 years, annual 5% coupon payments paid quarterly.   

Secondary market transactions of SOCAR Bonds reaching 190 million USD, REPO transactions amounting 34 million USD and number of deals exceeding 2,000 set these securities as the most frequently traded corporate debt securities tool in the country.

Owners of the SOCAR Bonds may get short-term loans through a REPO transaction at advantageous terms, as well as long-term loans in Manat at rates of 15 -16 % by pledging the bonds at appropriate banks. In the latter deal, the bond owners will not lose their 5% coupon payments and the effective interest rate decreasing to 9-10%.     

Next coupon payments of SOCAR Bonds is scheduled to July 17, 2020. Bonds can be invested in via ASAN Service No 1 and 5. For further details, investors may contact *19 99.