Next issue of AMF's collateralized mortgage obligations registered

The State Securities Committee (SSC) has registered the sixth issue of collateralized mortgage obligations of the Azerbaijan Mortgage Fund (AMF), operating under the Central Bank, in the amount of 40 million manat, SSC reported on Tuesday. This will be the sixth issue of mortgage obligations in the country.

Within the issue 40,000 bonds with par value of 1,000 manat are issued. Emissions will be implemented through a public offering.

The first issue of interest-bearing uncertificated registered covered bonds of the AMF was registered in June 2009. Within the issue 55,000 bonds with a nominal value of AZN 1,000 each for a return of three percent per annum were registered. The maturity date is determined on December 11, 2019. Placement of this issue was completed in January 2010.

The second issue of unsecured AMF bonds was registered by the State Committee for Securities on December 30, 2009. The total issue volume amounted to 75 million manat with an interest rate 3.25 percent per annum with par value of one thousand manats. The maturity date is December 11, 2019.

The third issue of interest-bearing uncertificated registered covered bonds of the AMF in the amount of 60 million manat was registered on November 19, 2010. The nominal value of the bond was 1,000 manat each for a return of three percent per annum. The maturity date is determined on December 11, 2017.

Fourth issue of secured bonds of the AMF was registered on September 23, 2011. The total issue volume amounted up to 20 million manat with an interest rate of three percent per annum in nominal value of one thousand manats. The maturity date is August 28, 2018.

The fifth issue in the amount of 30 million manat was registered on January 16, 2012, and its placement has been recently completed. Within the issue 30,000 bonds with a nominal value of 1,000 manat each and yield of three percent per annum were registered. The maturity date is January 22, 2022.

Funds obtained from placement of mortgage bonds are used to finance conventional mortgages. The total volume of placement of mortgage bonds (33 million manat) this year was at its lowest level for the whole period of existence of this market. In 2009, the total market for mortgage bonds was 49 million manat, in 2010, 81 million manat and in 2011, 77.77 million manat.

AMF was established in December 2005 and started issuing mortgage loans in March 2006.

The process of mortgage lending was suspended in the summer of 2007 due to lack of funds. It was resumed from June 1, 2009 Mortgage loans worth more than 430 million manat have been issued through the AMF from 2006 to November 2012.

At present, AMF's authorized agents are 27 banks, 19 insurance companies and 13 appraisal organizations.


/Trend/