ECONOMY


Next coupon payment for SOCAR Bonds – investors’ income reach 16 million USD

Baku, January 17, AZERTAC

SOCAR Bonds offering alternative investment opportunities for Azerbaijani citizens have become a trend in the local securities market. Investors of these securities made a total income of 1,250,000 USD during the 13th coupon payments transferred to the accounts of bondholders on January 17, 2020. This is the first coupon payment for 2020 and with it, the total income of bondholders for the last three years has reached 16,250,000 USD.

According to information provided by “SOCAR Capital” Company, quarterly coupon payments amounting 1.25 million USD of SOCAR bonds with nominal price of $1000, maturity of 5 years and 5% annual coupon paid quarterly, has been transferred to the bank accounts of the investors.

With secondary market operations totalling $185,000,000 and number of transactions over 2000, SOCAR bonds are considered the most liquid corporate security in the Baku Stock Exchange. REPO operations involving SOCAR Bonds amounting $34,000,000 is a sign of high demand for these securities.

Investors of SOCAR Bonds are able to apply for short-term loans on advantageous terms through REPO operations as well as long-term manat loans at 15-16% by using bonds as a collateral in relevant banks. In the latter case, the bondholders keep their right of receiving 5% coupons on bonds and effective interest rate of loan decreases to 9-10%.

As a result of high demand by the investors, new bond issues are planned in current year and issue preparations are in progress.

The next coupon payment on SOCAR Bonds which may be obtained at the ASAN Service Centers No.1 and 5 is scheduled for April 17, 2020.

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