First bonds from Unibank in compliance with international green finance standards – Interview

Last week, Unibank announced the issuance of the first bonds in Azerbaijan in compliance with international green finance standards. To learn more about these bonds underwritten by Unicapital OJSC, we asked a few questions to the company's Senior Trader, Royal Latifli.

• Mr. Royal, what are the key features of these bonds?

The nominal value of the bonds is set at 100 AZN, with an annual interest rate of 11.5%. Interest payments will be made on a quarterly basis.

Most importantly, individuals are exempt from all commission fees and income tax.

Setting the nominal price at an affordable amount allows those who want to invest in a small amount to benefit from the bank's high-yield investment instrument. Additionally, the quarterly coupon payments on the bonds provide investors with the opportunity to receive interest income every 3 months, instead of at the end of the year.

For more information and application: https://unicapital.az/unibank-istiqrazlari-apply/

• So, what distinguishes bonds that comply with international green finance standards from regular bonds?

I would like to note that this is Unibank's third bond issuance in the national currency. The most important innovation in the terms of the new bonds is that the funds raised will be directed towards financing projects that comply with green and social principles.

• What advantages will people who purchase Unibank bonds have?

One of the key advantages is that investors will have the option to return the bonds to the issuer at their nominal value at the end of the 1st, 2nd, or 3rd year of the circulation period.

Another advantage that will interest investors is that Unicapital will act as a market maker for the bonds to be issued. This means that bondholders can sell at any time, while those unable to purchase in the auction will have the opportunity to acquire bonds from the secondary market.