Azerbaijan Finance Ministry’s short-term bonds find restricted demand first time since 6 July
Baku, Fineko/abc.az. Yesterday, the Ministry of Finance of Azerbaijan carried out successful placement of 2 types of T-bills (state short-term bonds) at the Baku Stock Exchange (BSE). This is the second successful placement of two-type T-bills in 2012. The yesterday’s efficient auction has become the first since 6 July. So far placement of T-bills is going on with mixed success - only five (fifth, eighth, ninth, 14th and 15th) auctions out of 16 preliminary ones turned out to be successful.
The BSE reports that on 3 August the only bidder submitted an order for AZN 1.5 million for purchase of 75% of the issue with ISIN-code AZ101014360, issued AZN 2 million on par value.
The order was submitted at price of 99.86% of T-bills (claim for yield: 1.46% per annum). As a result, the T-bills with ISIN-code AZ101014360 were placed for AZN 1.5 million or 75%. Redemption of the issue with circulation period of 35 days is scheduled for 7 September 2012.
Besides one bidder submitted an order for AZN 4.02 bn for purchase of 100.53% of the issue with ISIN-code AZ101015367, issued AZN 4 million on par value. The order was submitted at price of 99.4% of T-bills (claim for yield: 2.42% per annum).
Under Ministry’s decision the order was satisfied at the price of 99.4% (2.42%). As a result, the bonds with ISIN-code AZ101015367 were placed for AZN 4 million or 100%. Redemption of the bonds with circulation period of 91 days is scheduled for 2 November 2012.
As a result of the auction, yield of T-bills with circulation period of less than one year did not change - 2.42% on cut-off price as well as 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.
Besides, yesterday no one of the bidders submitted an order for purchase of T-bills with ISIN-code AZ0104016362, issued for AZN 1 million on par value.
As a result, the T-bills with ISIN-code AZ0104016362 were not placed.
The redemption of these bills with circulation term of 364 days was scheduled for 2 August 2013.
As a result of the auction, yield of T-bills with circulation period of about one year did not change - 3.73% on both cut-off price and weighted average price.
Yield of this type of T-bills in 2012 still makes up 0.23 points.
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 16 auctions for which the bonds for AZN 65 million were set out and raised only AZN 10.057 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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