Azerbaijan’s state oil company SOCAR intends to diversify its financial channels, the company’s president Rovnag Abdullayev reported.
He made the remarks during the presentation of SOCAR bonds for Azerbaijani citizens.
Abdullayev pointed out that SOCAR was implementing a new strategy to strengthen its positions at the international level.
Eurobonds have been issued successfully, he said, adding that issuing bonds on the domestic market is an important step for diversifying financial channels and creating investment opportunities for the population.
SOCAR president pointed out that bonds could be obtained only by Azerbaijani citizens and local companies. SOCAR, for its part, guarantees the liquidity of the issued securities and the possibility of selling them at any time, he added.
Moreover, foreign individuals and legal entities can buy bonds from their owners on the secondary market, said Abdullayev.
He noted that by issuing bonds, SOCAR created new financing mechanisms for the country’s economy.
Abdullayev noted that issuing of SOCAR bonds in the country won’t lead to an increase in the volume of funds attracted from outside, as the funds from selling these securities would be used for diversification of the company’s financial portfolio.
“Part of the funds attracted as a result of issuing dollar bonds will be used to repay a part of the company’s external debt”, added the company’s president.
He said that SOCAR didn’t plan to offer its shares at IPO. The nominal value of each bond is $1,000. The annual bond yield is 5%. Applications for buying bonds will be received from September 20 to October 10. The placement will be held at Baku Stock Exchange on October 13-14.
Interest income is not taxable and will be paid quarterly. The bonds will be sold from the centers of ASAN Service #1 and #5. The population will be able to get the interest income in the International Bank of Azerbaijan, Kapital Bank, Rabitabank and Xalq Bank. Market maker services will be rendered by AzFinance, InvestAZ, PASHA Capital and PSG Capital investment companies. (Trend/Business World Magazine)
