The Baku Stock Exchange (BSE) will host an auction on placement of state medium-term bonds of the Azerbaijani Finance Ministry for a total of 10 million manat ($5.88 million) on April 13, 2021, AzVision.az reports citing Trend.
Bonds with a par value of 100 manat ($58.8), a circulation term of 1,820 days and a yield to maturity (YTM) of 8.5 percent will be offered at the auction.
The deadline for payment on interest (if any) is October 12, 2021, April 12, 2022, October 11, 2022, April 11, 2023, October 10, 2023, April 9, 2024, October 8, 2024, April 8, 2025, October 7, 2025 and April 7, 2026, while for payment on bonds – April 7, 2026.
PASHA Capital Investment Company is an underwriter on issuing of the ministry’s state bonds.
It is allowed to accept non-competitive orders during the auction, provided that the bond issue does not exceed 20 percent. In addition, the issuer may not accept these orders if the volume of orders issued by the auction participants for the purchase of bonds is less than 20 percent of the volume of bonds issued by the issuer at the auction.
If during the auction the demand for government bonds exceeds the supply and the price is satisfied by the issuer, the volume of bonds offered by the issuer may be increased up to 50 percent.
For 2021, the Ministry of Finance plans to issue 17 million bonds, the amount of which is estimated at 1.7 billion manat ($1 billion).