SOCAR Capital LLC, established in 2016, focuses on managing “SOCAR Bonds” as a key activity segment.
“In 2016, the issuance of the first SOCAR Bonds, worth USD 100 million, for domestic capital markets received orders amounting to USD 204 million, marking a significant turning point in the local capital markets,” SOCAR Capital told International Finance.
Although the securities market had long existed in Azerbaijan, it was after the second issuance of SOCAR Bonds that a real influx into the market was observed among the Eurasian country’s population.
In 2021, the second “SOCAR Bonds” issuance, valued at USD 100 million, received offers exceeding USD 380 million. Of the purchased bonds, 60% belonged to individuals. The high liquidity, ease of transactions, and timely interest payments according to the schedule generated significant interest among both individuals and legal entities. The price of the bonds has never fallen below their nominal value (USD 1,000).
“For more than eight years, SOCAR Bonds have maintained the status of the most traded corporate bonds on the Baku Stock Exchange. SOCAR Bonds are the first securities in Azerbaijan to be widely bought and sold by the public and have inspired other corporate companies to issue their securities. As a result, dozens of corporate bonds are currently circulating in the domestic capital markets. The primary goal of issuing SOCAR Bonds was to contribute to the development of domestic capital markets and offer an alternative investment tool for local investors,” SOCAR Capital continued.
On January 15, 2025, SOCAR Capital achieved another milestone by leading SOCAR’s “green” bonds worth USD 200 million for Azerbaijan’s domestic capital markets. The designation of these bonds as “green” is no coincidence, as the funds raised will be allocated to SOCAR Green’s projects and investments aimed at enhancing the country’s renewable energy potential.
As is known, for Azerbaijan, which hosted the prestigious “COP29” event under the United Nations Framework Convention on Climate Change, the development and promotion of green energy are of paramount importance.
Issued under the slogan “Green Income, Green Future,” SOCAR’s “green” bonds aim to provide reliable and stable income to Azerbaijani citizens while supporting the country’s progress in green energy.
Through this initiative, SOCAR intends to support and accelerate the development of environmentally friendly energy sources and SOCAR Capital occupies an important role in this mission.
In just eight years, the company has made innumerable contributions to Azerbaijan’s capital markets. Some of these include the development of the infrastructure of the local capital market, expansion of the investor base, increase in exchange trading volumes, greater financial literacy, and channelling idle funds into the economy.
SOCAR Capital is working to improve Azerbaijani companies’ access to financial markets while also enhancing activity in the corporate bond market. The firm is actively promoting the trading of “SOCAR Bonds” through a market maker and is establishing a call centre to promptly address investors’ inquiries.
As of January 2025, SOCAR Capital has gone ahead with the move of implementing the third mass placement via subscription. The company is also collecting subscription orders from investors through multiple investment companies, banks, and the “ASAN Service,” ensuring wide public access.