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 government securities

    Government securities are the government bonds issued by the Ministry of Finance of the Republic of Azerbaijan and the short term notes issued by the Central Bank of the Republic of Azerbaijan.

    Depending on turnover terms government bonds can be short term (1 month, 3 months, 6 months and 1 year), medium term (2 years or 3 years) and long term (5 years and more). Government bonds is an internal debt tool and is issued to finance budget deficit.

    The Central Bank notes are usually issued for a period of 28 days (4 weeks) and is used as a tool to sterilize money supply. For its issuance specifications notes are in the same category as bonds.

    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.

    According to the law, bonds are issued in the form of uncertificated and registered securities only.

    BSE facilitates government bond and central bank notes allotment and secondary market operations.

    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 corporate bond trading on BSU.