AMF sold new batch of bonds from auction

The sixth placing of the eighth issue of bonds of the Azerbaijan Mortgage Fund (AMF) took place. The May 19 auction, according to the Fund itself, exhibited securities amounting to 5 million manat.

According to the results of the auction, which was attended by three investors, the entire volume of bonds was placed. The total volume of the submitted bids was 14,383,000 manat . In February and May 2014 AMF placed bonds for AZN 30 million of the eighth issue.

Recall the SSC in January this year registered a prospectus of the eighth AMF bond issue by 40 million manats (40,000 secured bonds each worth 1 000 manats). The maturity period is 3,600 days, the rate is 3% per annum and the interest payments are every 180 days.

Earlier, in 2009-2013 the Mortgage Fund within seven issues posted bonds totaling 300 million manats.

AIF from March 2006 began to issue mortgage loans. Issuance of social mortgage in Azerbaijan began in 2007 and lasted for 6 months. On June 1, 2009 renewed the process of mortgage loans on commercial terms through 28 agent banks. On commercial terms, mortgages are issued by funds raised by the Fund from issuing its own bonds.

Mortgage loans on commercial terms are issued in manats and are only provided to Azerbaijani citizens. Loans are granted for a period of 3 to 25 years, the maximum loan must not exceed 50 000 manat, the loan is granted at a rate of no more than 8 % per annum.

Financed from the state budget is only social mortgage. Its maximum size is 50,000 manat at the rate of not more than 4% per annum. - 17D-