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Azerbaijani Finance Ministry’s securities in great demand at Baku Stock Exchange

16 February 2021 21:00 (UTC+04:00)
Azerbaijani Finance Ministry’s securities in great demand at Baku Stock Exchange

By Trend

The Baku Stock Exchange (BSE) held an auction on the placement of medium-term bonds of the Azerbaijani Ministry of Finance in the amount of 45 million manat ($26 million) on Feb. 16, 2021, Trend reports on Feb. 16 citing the BSE.

The term of maturity is 728 days.

During the auction, 15 investors filed 23 bids in the price range from 86.6 manat ($50.9) with a yield to maturity (YTM) of 15 percent to 100 manat ($58.8) with a YTM of 7 percent.

In accordance with the decision of the finance ministry, the cut-off price of bonds reached 98.38 manat ($57.87) with the YTM of 7.89 percent, and the weighted average price – 98.45 manat or $57.91 (7.85 percent). The total amount of orders at nominal prices amounted to over 140.8 million manat ($82.8 million), and the volume of placement is 67.5 million manat ($39.7 million).

The maturity date is Feb. 14, 2023.

The volume of bonds offered by the issuer can be increased up to 50 percent if during the auction state bonds exceed the supply of demand and the issuer is pleased with the price.

Participants in the auction must fulfill their obligations to purchase bonds till February 17, 2021.

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