Azerbaijan Mortgage Fund (AMF) under the Central Bank of Azerbaijan (CBA) placed the first tranche from the seventh issue of interest-bearing undocumented secured registered bonds in the amount of five million manats, the Baku Stock Exchange (BSE) said on Monday.
Currently, bonds worth five million manats have been put for auction, but demand exceeded offer by 9.94 per cent.
An application, worth 5,497 million manats was submitted by one investor. It was submitted at the price of 100 percent of par value.
The bonds will circulate till Aug. 23, 2023.
On Sept. 30, 2013, AMF registered the issuance of secured bonds worth 20 million manats, at the Azerbaijani State Committee for Securities. Par value of each bond was 1,000 manats.
The bonds will mature in 10 years, with an annual interest rate of three per cent.
The AMF was established in December 2005 and began granting mortgage loans in Azerbaijan in March 2006.
Social mortgage is financed by the state budget, and the ordinary mortgage is financed through the funds from the placement of mortgage bonds.
The process of mortgage lending was suspended in the summer of 2007 due to lack of funds. It was renewed from June 1, 2009.
In total, mortgages worth 580 million manats have been granted since the beginning of the financing though AMF, that is, from 2006 to 2013 (January- September).
At present, AMF's authorized banks include 28 banks. Some 21 insurance companies and 11 appraisal organizations also participate in the mortgage market.