The amount of transactions with bonds of Azerbaijan’s State Oil Company in the securities market exceeded $10 million in August 2017, according to SOCAR Capital company. PSG Kapital investment company, which acts as a market maker on bonds in the secondary market, has said that 10,618 SOCAR bonds were traded in the secondary market last month. Thus, the total bulk of transactions with SOCAR bonds has reached $107 million.
In the past eight months, SOCAR securities accounted for 75% of bond transactions in the Baku Stock Exchange. The high market activity is primarily due to the liquidity of these securities, which attracts both private individuals and legal entities. In particular, companies’ interest in SOCAR bonds has increased, and legal entities prefer to hold significant amounts in these securities, said Turan Talybova, an analyst at PSG Kapıtal.
Recently, public demand in these bonds has increased in the country’s regions as well. PSG Kapital analysts explain this by the increase in public awareness on financial issues and people’s investing their funds in efficient financial instruments.
SOCAR bonds were released in the amount of $100 million in September 2016. The bonds were issued for five years, with a yield of 5% per year. The annual yield of each bond, with face value of $1,000, amounts to $50.
The cost of SOCAR bonds has been above their face value, reaching $1,007 in August.