Finance Ministry Places State Bonds of Three-Year Turnover Period
2017 November 01 ( Wednesday ) 12:13:11
Baku / 01.11.17 / Turan: The Finance Ministry placed state bonds with a three-year turnover term (state medium-term bonds, SMTB) on October 31. All the auctioned securities were sold.
At the auction, the bonds were sold to investors for the amount of AZN 20 million, the average weighted yield on which was 10.17% per annum. In terms of applications, the yield reached 12.9%. The Finance Ministry forecasted a yield of 15% per annum for these SMTB. At the auction, the demand for them exceeded the supply by AZN 39 million.
Earlier, the Finance Ministry brought securities with a circulation period of 91, 182 and 364 days, and 2 years for the auctions. Rates on the yield of three-year bonds may also indicate the government"s expectations of inflation in the coming years.
This year, the Finance Ministry issued medium-term bonds worth AZN 100 million to cover the state budget deficit. In general, the total volume of the issue of bonds is 700 million manat. In 2018, the government intends to issue government bonds in the same volume. ----- 08D