Debt instruments Market

Debt instruments market enable government bodies and private companies to borrow using various debt instruments. Issuers are free to set conditions when borrowing while investors gain an opportunity to receive stable profit.

  • Short info about mortgage bonds

    Mortgage bonds can only be issued by the banks operating in the Republic of Azerbaijan and the Azerbaijani Mortgage Fund under the Central Bank of the Republic of Azerbaijan.

    Mortgage bonds – a bond secured by a mortgage.

    Bond – is a registered, uncertificated investment security in which a bondholder loans money to an issuer and depending on conditions receives either interest (coupon) or discount or principal amount at defined period of time.

    Depending on the type of issue, earnings from bonds are paid to investors either in the form of interest (coupon), discount or mixed form (both interest and discount). As a rule, short term bonds are usually issued at a discount, medium and long term bonds are issued at interest rate.

    Mortgage bonds can be medium and long term which are issued at interest rate and uncertificated.

    BSE facilitates bond allotment and secondary market operations. In order to trade bonds have to be listed.

    Allotment of mortgage bonds (public offering) is carried out through a stock exchange. A prospectus shall be prepared for public offering of securities. SCS sets requirements for drafting of a prospectus.

    Secondary market is organized for allotted bonds that are already in turnover.

    Acquisition of securities on BSE and participation in BSE facilitated market is undertaken through stock exchange members. For this you need to contact any stock exchange member.

    Visit the following links or contact us to learn more about mortgage bond trading on BSU.