BAKU, Azerbaijan, August 12. The Baku Stock Exchange (BSE) will hold an auction for the placement of mortgage bonds issued by the Azerbaijan Mortgage and Credit Guarantee Fund (MCGF), totaling 30 million manat ($17.6 million), on August 18, 2025.
The data obtained by Trend from MCGF shows that the bonds will be offered at a price of 1,007 manat ($590) per unit.
The Central Bank of Azerbaijan registered the base prospectus for these registered, interest-bearing, dematerialized bonds on April 28, 2025. The total issuance volume is 100 million manat ($58.8 million), with each bond having a nominal value of 1,000 manat ($588) and an annual interest rate of three percent.
According to the prospectus, the placement will be carried out via public offering through the BSE, while the National Depository Center will provide depository and registry services.
The Baku Stock Exchange was founded in 2000 to create a structured stock market in the nation. The objective of BSE is to create and enhance market infrastructure that facilitates the trading of securities and ensures effective transaction execution. It serves as the exclusive organizer of securities trading at the stock exchange in Azerbaijan. The members consist of investment businesses entitled to directly participate in exchange trading. At present, the BSE comprises eight members. The legal structure of BSE is a closed joint-stock company, including 19 owners, which include banks, investment firms, and Borsa Istanbul.
The Mortgage and Credit Guarantee Fund of Azerbaijan is a public fund established in 2017 by the amalgamation of the Azerbaijan Mortgage Fund and the Credit Guarantee Fund of the Republic of Azerbaijan. The objective is to enhance living circumstances, establish an effective financing system for house construction, attract both domestic and international investors to mortgage lending, and facilitate access to funding for SMEs. MCGF provides financial instruments, including credit guarantees and mortgage loans, for this purpose.
