The history of the capital market of Azerbaijan reflects over a century of progress, innovation, and commitment to Azerbaijan’s economic development.
Early Foundations
The origins of capital market trading in Azerbaijan date back to 1886 with the establishment of Baku Exchange. By 1909, the issuance of bonds for the Sholar Water Line marked a significant milestone, followed by the first issuance of shares in 1913. However, in 1930, the operations of Baku Exchange were suspended.
A New Era of Trading
In 1997, Baku Stock Exchange was founded, ushering in a modern era for Azerbaijan’s capital markets. Trading officially began on September 1, 2000, and quickly expanded to include corporate bonds, shares, and Central Bank’s notes in 2004.
Milestones in Development
The BSE achieved several key advancements over the years:
• 2006: Introduction of interbank REPO operations
• 2009: Trading of mortgage bonds commenced
• 2013: Creation of the first market maker institute
• 2016: Launch of SOCAR bonds and the CETA platform, a centralized trading system
• 2018: First securities issue by a non-financial sector company
Expanding Global Reach
The BSE enhanced its international presence and influence:
• 2019: Became a member of the International Stock Exchange Association and hosted the first domestic currency bond issue by a foreign issuer
• 2020: Partnered with the World Federation of Exchanges and joined the United Nations’ Sustainable Stock Exchanges İnitiative group
Innovative Growth
• 2021: Launched the Investment Travel series in Azerbaijan’s regions
• 2022: Introduced the Securities Issuance System in collaboration with the Central Bank of Azerbaijan
• 2023: Achieved significant tax exemptions for income generated through publicly traded securities
A Bold New Identity
In 2024, the BSE unveiled its new brand identity, symbolizing its modern approach and ongoing commitment to innovation. The year also marked two historic achievements: the first initial public offering (IPO) in Azerbaijan’s history and the introduction of remote trading for shares on the secondary market.