(MENAFN- AzerNews) By Sara Israfilbayova
USD bonds of Azerbaijan's state-owned SOCAR can be sold on the stock exchange market for $1,007 and bought for $1,010, the investment company PSG Capital reported.
SOCAR issued USD bonds with a volume of $100 million in September 2016. The period of their circulation is 5 years, and the rate is 5 percent.
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.
In the secondary market, trades on the bonds of SOCAR began on October 17, 2016.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.
The interest on bonds is being paid once a quarter. To date, 3 interest payments on bonds have been made [January 17, April 17 and July 17].
In general, $3.75 million were paid to bondholders. The next interest payments are scheduled for October 17, and on this day investors will be paid $1.25 million.
SOCAR bonds will be in circulation until 2021.
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 $1000 and they can always be converted into cash currency.
SOCAR is a whollystate-ownednational oil company headquartered inBaku,Azerbaijan. The company producesoilandnatural gasfrom onshore and offshore fields in the Azerbaijani section of theCaspian Sea.
The company includes such production associations as Azneft (the enterprises producing oil and gas onshore and offshore), Azerikimya (the chemical enterprises) and Azerigas (distributor of gas produced in the country), as well as oil and gas processing plants, service companies, and the facilities involved in geophysical and drilling operations.
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