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Circulation term of SOCAR first bonds issued in 2016 expired

19.10.2021,11:17


October 19, Fineko/abc.az. The 5-year period of circulation of SOCAR bonds, the most demanded corporate securities by investors in the Azerbaijani capital market, concluded on October 17. 20th and the last coupon payment on SOCAR bonds - interest income at an amount of $1,250,000, as well as the par amount of $100 mln. on SOCAR bonds were transferred to the accounts of bondholders. Thus, investors' final interest earnings reached $25 mln for the period of 5 years.

SOCAR bonds issued in 2016 achieved many successes during the period of market circulation:

  • Demand on bonds was more than twofold during the subscription period;
  • Secondary market transactions amount exceeded $202 mln.;
  • More than 2500 deals were executed;
  • Alternative investment opportunities for our citizens were introduced;
  • Hundreds of individuals who previously did not participate in capital markets became first-time bondholders;
  • Local capital stimulated the attraction of new investors to our markets;
  • SOCAR bonds had a share of 91% of the total transaction number and 75% of the deal volume on corporate bonds operations in the Baku Stock Exchange over the 5-year period;
  • The volume of repurchase (Repo) transactions with SOCAR bonds exceeded $36 mln.;
  • Low interest loans from local banks were available with collaterization of the bonds without loss of quarterly interest payments on bonds
  • SOCAR bonds traded at a frequency of 72% of all possible trading days in the Baku Stock Exchange over the past 5 years;
  • Quarterly interest payments were constantly kept according to the schedule;
  • Market Maker continuously provided the liquidity;

Note that the subscription of new SOCAR bonds is still in progress (until October 29.) It can be obtained from “ASAN” service centers No. 1 and No. 5, as well as investment companies operating in our country. Bondholders of the first emission can also participate in current ongoing subscription for the second emission. Placement of bonds will take place on November 1 and interest will be paid on a quarterly basis. Period of circulation of new bonds is 5 years.

Short number *19 99 is always at the service of investors.

Keywords: socar