No demand again for Azerbaijan Finance Ministry’s short-term bonds
Baku, Fineko/abc.az. Yesterday, the Ministry of Finance of Azerbaijan failed to place successful placement of state short-term bonds (T-bills) at the Baku Stock Exchange (BSE). So far placement of T-bills is conducted with mixed success - only three (fifth, eighth and ninth) out of 10 primary auctions turned out to be successful.
The BSE reports that on 10 July the two bidders submitted the orders for AZN 1.06 million for purchase of 15.2% of the issue with ISIN-code AZ0102010367, issued AZN 7 million on par value.
The orders were submitted at price of 98.53% of T-bills (claim for yield: 2.99% per annum) and 98.6% (2.85%).
Under Ministry’s decision the orders were not satisfied. As a result, the bonds with ISIN-code AZ0102010367 and circulation period of 182 days were not placed.
As a result of the last successful auction, yield of T-bills with circulation period of less than one year fell by 0.08% from 2.5% to 2.42% on cut-off price and on weighted average price.
For the auctions of 2012 yield decline on the cut-off price still makes 0.57% and on weighted average price 0.53%.
In 2008-12, decline of yield is still at 5.54 points and 5.18% respectively.
At that, yield of T-bills with circulation term of about a year grew by 0.23% from 3.5% up to 3.73% both on cut-off price and weighted average price at the last successful auction.
For the auctions of 2012 yield increase on the cut-off price still makes 0.23% .In 2011 it did not change and in 2010 its rise on cut-off price made 0.51 points as well as on weighed average price. As a result, in 2008-12, decline of yield is still at 7.69% and 7.97% respectively.
The Ministry of Finance registered the bonds issue prospectus for AZN 180 million for 2012. It has been conducted 10 auctions for which the bonds for AZN 47 million were set out and raised only AZN 4.557 million so far.
For 2011 the Finance Ministry registered an issue prospectus for AZN 400 million, set out the 64 issues for AZN 339 million for trading and raised only AZN 158.805 million. The last auction in 2011 took place on 22 November.
In 2010, the Ministry of Finance registered T-bill issue prospectus in the amount of AZN 1.1 bn and raised only a little more than AZN 236.7 million. In 2009, the MoF planned to issue T-bills for AZN 1.1 bn but managed to place them only for AZN 432.906 million.
In 2008, the Ministry issued T-bills for AZN 1.2 bn and raised AZN 317.495 million. In 2007, the Ministry issued T-bills for AZN 280 million and raised AZN 204.889 million.
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