The cost of dollar bonds of SOCAR, which are in greatest demand on the securities market in Azerbaijan, has again risen in price. Advisor of SOCAR on financial markets Tolga Kotan said in an interview with CBC that the reason for this is the growth in demand for these bonds and the approach of the date of the next interest payments. According to him, the volume of operations on dollar bonds of the company in the secondary securities market exceeded $160 million. The next and last interest payment in the current year will be held on October 17.
“Today on the exchanges, SOCAR bonds can be bought for $ 1022, and sell for $ 1008. This is facilitated by the growth in demand for bonds and the approach of the next interest payment date. The annual interest on these securities is 5 percent, but you do not need to wait a whole year for this. SOCAR carries out interest payments 4 times a year, that is, every 3 months. This is an important feature of these bonds,” said.
SOCAR issued dollar bonds with a volume of $100 million in September 2016. The period of their circulation is five years, and the rate is 5 percent. In the secondary market, trades on the bonds of SOCAR began on October 17, 2016.
The nominal value of the bonds is $1,000 and the annual yield of each bond is $50, which makes these bonds the most profitable in the financial market.
SOCAR bonds on the secondary market along with Azerbaijani citizens can be purchased by foreign individuals and legal entities. Over the past period, foreign investors have been interested in these securities.
Another factor that increases investor interest in SOCAR’s bonds is high liquidity and a guarantee that the value of bonds will never fall below $1,000 and they can always be converted into cash currency.