In order to ensure the stable development of the securities market and revitalize the corporate securities segment, to stimulate listing in accordance with the strategic priorities set by the Baku Stock Exchange for 2021-2023
the work on attracting new issuers to the list, the formation of a legal framework in line with international practice and the optimization of business procedures has been continued
In order to promote private sector capital market financing initiatives and listing on the stock exchange in 2021, the listing requirements of the Baku Stock Exchange have been simplified and an incentive tariff regime set by the Central Bank of the Republic of Azerbaijan (Central Bank) has been introduced in the capital market. At the same time, in order to stimulate the mass supply of corporate securities, the Baku Stock Exchange has introduced a mechanism for rewarding investment companies providing underwriting services. This, in turn, had a positive impact on the ability to place securities on the stock exchange through the public offering method.
The work done by the Central Bank of the Republic of Azerbaijan to increase the institutional development and depth of the capital market and the active dialogue with capital market participants have contributed to increasing the efficiency of the regulated market. At the same time, investment companies that are members of the Baku Stock Exchange have played an important role in the dynamic growth of the market by developing the role of financial intermediaries.
As a result of the work done to develop the capital market, the Baku Stock Exchange has achieved the highest results in the history of the total trade, corporate securities market and repo transactions. For the first time during the 21-year activity of the Baku Stock Exchange, the trade turnover in 2021 exceeded 15 billion AZN and amounted to 15.3 billion AZN respectively. The volume of market capitalization increased by 4.3 billion AZN and reached the highest level in the history of the Baku Stock Exchange. A record volume of corporate securities (excluding mortgage bonds) was recorded and 33 placements worth AZN 376 million were made. For comparison, 26 corporate securities (excluding mortgage bonds) worth a total of 350 million manat were placed on the Baku Stock Exchange in 2018-2020.
The volume of repo transactions in 2021 amounted to 7.2 billion AZN, the highest turnover in recent years in the history of the Baku Stock Exchange. For comparison, during 2018-2020, this figure amounted to a total of 3.8 billion AZN. The ratio of the total trade turnover of the Baku Stock Exchange to GDP increased by 18 percent.
