What are the advantages of Unibank's high-yield manat bonds?

High-yield manat bonds issued by Unibank have successfully passed listing on the Baku Stock Exchange and the placement of these bonds will take place on September 7. The auction will be conducted using a single-price method (at nominal value) in the premium market segment of the Baku Stock Exchange, with underwriting support from “Unicapital Investment Company” OJSC. Elmira Garibova, Director of "Unicapital Investment Company" OJSC, answered our questions regarding the issuance.

• How has the issuance of high-liquidity manat bonds with an annual interest rate been received by investors?

As you know, Unibank bonds with an annual interest rate of 11.5% and a total volume of 20 million manat have successfully passed listing on the Baku Stock Exchange. There has been significant interest from both legal entities and individuals in the bonds placed in the premium market segment. This issuance is not the first valuable paper issuance of “Unibank,” one of the oldest commercial banks in the country, for which our company is the underwriter. What distinguishes this issuance from others is its reasonable nominal value and high interest rate.

• What are the main reasons for the high interest in Unibank bonds from individual investors?

Firstly, it was expected that Unibank bonds would receive considerable interest and favor from individual investors. According to the legislation of the Republic of Azerbaijan, starting from February this year, individual investors are exempt from a 10% income tax on the purchase of valuable papers. Additionally, another benefit applicable specifically to individual investors regarding these bonds is that all commissions for the purchase of Unibank bonds by individuals are covered by the issuer (Unibank CB). No commission is charged to individual investors at the time of purchase. Against this backdrop, the nominal value of the bonds being 100 AZN, the annual interest rate of 11.5%, and the payment frequency of every three months make Unibank bonds a very attractive investment instrument for individuals.

• Are these bonds currently available for purchase?

Yes, applications for the purchase of these valuable papers are already being accepted. Individuals interested in acquiring Unibank bonds in the initial issuance can apply in advance via the following link: https://unicapital.az/unibank-istiqrazlari. The placement of the bonds will take place on September 7, 2023.