Azerbaijani Finance Ministry puts up mid-term state bonds for new auction

By Trend

The Baku Stock Exchange (BSE) held an auction on the placement of medium-term state bonds of the Azerbaijani Ministry of Finance, Trend reports on July 28 referring to a source in the BSE.

The amount of the bonds was 20 million manat ($11.8 million) and the term of maturity – 1,092 days.

During the auction, 15 investors filed 20 bids in the price range from 98.67 manat ($58.04) with a yield to maturity (YTM) of 7 percent to 100.95 manat ($59.38) with a YTM of 6.15 percent.

In accordance with the decision of the finance ministry, the cut-off price of bonds reached 100.73 manat ($59.25) with the YTM of 6.23 percent, and the weighted average price – 100.82 manat or $59.30 (6.2 percent).

The total amount of applications at nominal prices amounted to 108.9 million manat ($64.05 million) while the volume of placement - 20 million manat ($11.8 million) which shows an excess of demand over supply by more than five times.

The maturity date is July 23, 2024.

The auction participants must fulfill their obligations to purchase bonds till July 28, 2021.

(1 USD = 1.7 AZN on July 28)