Azerbaijani Finance Ministry auctions state medium-term bonds

By Trend

The Baku Stock Exchange (BSE) hosted an auction on placement of state medium-term bonds of the Azerbaijan Finance Ministry for a total of 10 million manat ($5.8 million) on Dec.1, 2020, Trend reports with reference to the stock exchange.

The circulation term is 728 days.

During the auction, 9 investors submitted 12 bids in the price range from 97.93 manat ($57.61) with a yield to maturity (YTM) of 8 percent to 100.46 manat ($59.09) with the YTM of 6.6 percent per bond.

According to the decision of the Finance Ministry, the cut-off price of bonds amounted to 100 manat ($58.8) with the YTM of 6.85 percent, and the weighted average price was 100.31 manat ($59.01) with the YTM of 6.68 percent.

The total amount of orders at nominal prices amounted to nearly 42.1 million manat ($24.76 million), and the placement volume – 6.978 million manat ($4.1 million).

Maturity date of the bonds is November 21, 2023.

Bidders must fulfill their obligations to acquire the bonds till Nov.29, 2022.

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.

Auction participants must fulfill their obligations to purchase bonds by December 2, 2020.

(1 USD = 1.7 AZN on Dec.1)