Auction on Placement of AMF Bonds

Azerbaijan Mortgage Fund (AMF) is going to hold an auction on placement of bonds totaling 5 million manat tomorrow.

According to the Fund, it is the seventh placement of bonds in the framework of the ninth issue. The nominal value of each of the 5,000 bonds is 1,000 manat. The securities will be exhibited at the price of 100.1333%.

Recall within six auctions in January-July 2015 AMF placed bonds of the ninth issue in the amount of 26 million manat. The prospect of the 9th issue totaling 50 million AZN was registered by the State Committee for Securities on December 30 last year. The issue is divided into 50,000 secured bonds with par value of 1,000 manat for security, with the maturity period of 10 years and the rate of 3% per annum.

In 2009-2014, the AMF within eight issues placed bonds for a total amount of 340 million manat.

The Fund created in December 2005 began to issue mortgage loans in March 2006. Issuance of social mortgage lasted 6 months of 2007. On June 1, 2009 relaunched the process of mortgage lending on commercial terms through 30 agent banks (at the expense of funds raised from the issue of the Fund's own bonds). Commercial mortgage loans are issued in manat to citizens of the country for a period of 3 to 25 years (the maximum size is not more than 50,000 manat at a rate of not more than 8% per annum).

The maximum size of the social mortgage is 50,000 manat at a rate of not more than 4% per annum.

In 2014 the volume of mortgage loans from the AMF made AZN 97 million, while a year earlier it was 112.9 million manat. --17D-