Baku, Fineko/abc.az. State short-term bonds (T-bills) of the Azerbaijan’s Ministry of Finance have been placed for the first time since 4 July.
The Baku Stock Exchange informs that on 3 October the total volume of orders from investors amounted to AZN 2,002,800 that was equivalent to only 33.38% of the issuer’s supply (AZN 6 million). It allowed the Ministry of Finance to place the papers.
Today, to purchase T-bills with AZ0101038435 ISIN (AZN 3 million at face value for 35-day term) a BSE member set an order for AZN 2,002,800 and requested the price of 99.86% (claim for annual yield of 1.46%).
The MoF satisfied the request at cut-off price of 99.86% (1.46%) and weighted average price conformed to it. T-bills with AZ0101038435 ISIN were placed for AZN 2,002,800. They will be in circulation until November 7, 2014.
There was no any information on auction hold for T-bills with AZ0102039432 ISIN (AZN 3 million at face value with 91 circulation period).
Nevertheless, as a result of today’s trading, the yield of T-bills with circulation period of less than one year declined by 0.52% from 1.98% to 1.46% on both cut-off and weighted average prices. Therefore, for auctions of 2014 the yield growth on cut-off price is 1.04% and on weighted average price – 0.4%. For 2008-14 the yield decline made up 6.5 points on cut-off price and 6.14 points on weighted average price.
Yield on T-bills with circulation period about 1 year (not placed today) remained at the level of 2.99% on the cut-off price, as well as on the weighted average price. As a result, in 2014 the zero growth is observed on both cut-off and weighted average prices and for 2008-14 the yield decline made up 8.43 points on cut-off price and 8.71 points on weighted average price.
The total T-bills issue prospectus for 2014 makes AZN 200 million at face value and MoF has already set out T-bills for AZN 125 million. They were placed by AZN 20.596 million or 32.62% of supplied volume. In 2014 the initial placement of T-bills was not performed at 30 auctions.
Last year the Ministry failed to hold 58 auctions including first placement of T-bills. In 2013 during 68 auctions the Finance Ministry set out T-bills for AZN 189 million and raised only AZN 11.19 million.