Azerbaijani Finance Ministry auctions state short-term bonds

BAKU, Azerbaijan, Dec. 15

By Zeyni Jafarov – Trend:

The Baku Stock Exchange (BSE) hosted an auction on placement of state short-term bonds of the Azerbaijan Finance Ministry for a total of 20 million manat ($11.8 million) on Dec. 15, 2020, Trend reports with reference to the stock exchange.

The circulation term is 364 days.

During the auction, 17 investors submitted 25 bids in the price range from 90.95 manat ($53.5) with a yield to maturity (YTM) of 10 percent to 94.6 manat ($55.6) with the YTM of 5.74 percent per bond.

According to the decision of the Finance Ministry, the cut-off price of bonds amounted to 94.38 manat ($55.5) with the YTM of 5.99 percent, and the weighted average price was 94.4 manat ($55.5) with the YTM of 5.96 percent.

The total amount of orders at nominal prices amounted to 88.6 million manat ($52.1 million), and the placement volume – 30 million manat ($17.6 million).

Maturity date of the bonds is Dec. 14, 2021.

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 till Dec. 16, 2020.

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