OREANDA-NEWS. May 06, 2011. The Ministry of Finance of Azerbaijan has placed today this year’s 20th issue of T-bills (state short-term bonds) at the Baku Stock Exchange (BSE).

The BSE reports that on 6 May two auction bidders submitted the orders for totally AZN 5.505 million for purchase of 110.1% of the issue with registration number 10202031S with announced volume of AZN 5 million.

The orders were submitted at the price of 99.5% of T-bill par value (claim for yield: 2.02% per annum) and 99.01% (4.01%).

Under Ministry’s decision, the cut-off price was set at the level of 99.45% of face value (yield: -2.22%) and the weighted average price was set at 99.49% (2.06%). As a result, the issue was placed for AZN 5 million or 100%. The issue with 91-day circulation period is scheduled for redemption for 5 August 2011.

Following the auction yield of T-bills with circulation period of less than one year declined on the cut-off price by 0.76% from 1.46% up to 2.22% and on weighted average price by 0.6% from 1.46% to 2.06%.

During this year’s auctions rise of yield on cut-off price still makes 0.28% and on weighted average price 0.46%. In 2008-11, decline of profitability still makes 5.84% and 5.54% respectively.

As for the issue with circulation period of around one year, not placed today, its profitability on cut-off price did not change - 3.5%,  as well as on weighted average price. In 2010, its rise on both cut-off price and average weighted price is 0.51%.

In 2008-10, decline was registered on these indicators by 7.92% and 8.2% respectively.

For 2011 the Finance Ministry registered an issue prospectus for AZN 400 million. The 21 issues for AZN 103 million have been set for trading and raised only AZN 94.001 million.

In 2010, the Ministry of Finance registered T-bill issue prospectus in the amount of AZN 1.1 bn and raised only a little more than AZN 236.7 million. In 2009, the MoF planned to issue T-bills for AZN 1.1 bn but managed to place them only for AZN 432.906 million.

In 2008, the Ministry issued T-bills for AZN 1.2 bn and raised AZN 317.495 million. In 2007, the Ministry issued T-bills for AZN 280 million and raised AZN 204.889 million.