BAKU

Azerbaijan’s state energy firm SOCAR plans issued five-year bonds worth $100 million on the Baku Stock Exchange (BSE) to finance the company’s obligations.

The coupon rate is 4.5 percent per annum, payments to bondholders will be made once a quarter. The issue is divided into 100,000 bonds with a par value of $1,000 per security, BSE reported.

The volume of submitted applications amounted to $380.614 million, 754 investors submitted 761 bids for the purchase of bonds.

PSG Kapital investment company acts as a market maker in operations on the primary and secondary markets.

This is SOCAR’s second issue of its securities on the domestic market. In September 2016, the company carried out the first issue of five-year bonds in the amount of $100 million on the domestic market. Applications for the company’s bonds exceeded $203.4 million.

The issue was divided into 100,000 five-year bonds with a par value of $1,000 per security. The purpose of the issue was to diversify the company’s financial channels and create new investment opportunities for the population. The bond yield was 5 percent per annum. Interest was paid every three months. The last payment was made on October 18, 2021. The bondholders received a total of $25 million in revenue.

The company plans to use the funds raised from the placement of bonds to finance obligations under various projects, particularly the reconstruction of the Baku oil refinery, construction of a urea plant and others.

Azerbaijani citizens, as well as domestic and foreign legal entities registered in Azerbaijan, can subscribe to SOCAR’s bonds. The priority of sales will be given to individuals. Foreign individuals and legal entities will also be able to buy from bondholders on the secondary market.