YEREVAN, March 10. /ARKA/. Armenia’s government approved today the signing of some agreements necessary for emission of Euro bonds.
Gagik Khachatryan, finance minister, said at today’s Cabinet session that Eurobond emission is considered as one of sources for filling government budget deficit, but the state debt regulation is not limited to bond placement, since regulation of liabilities is very important as well in terms of minimization of possible risks.
In his words, the finance ministry together with the international consulter and the general underwriter has prepared a package of documents necessary for issuing the Euro bonds.
There is the Euro bond emission scheme, an underwriting agreement, a liabilities regulation agreement, a fiscal agency agreement and a memorandum of liabilities regulation offer.
It is necessary also to sign some other documents stipulating the Euro bond emission terms.
Khachatryan said everything depends on conditions at capital market, but even if conditions are favorable, it is possible to issue the bonds only with appropriate papers.
On January 30, the Armenian government approved the signing of agreements on provision of consulting and underwriting services on another regular emission of Euro bonds with Deautche Bank AG, HSBC Bank and J.P. Morgan Securities companies. The international legal consulter is Cleary Gottlieb Teen & Hamilton LLC.
On September 19, 2013, Armenia issued Euro bonds for the first time. The then emission totaled $700 million, with 7 years redemption term and 6% yield.
Key underwriters were Deutsche Bank AG, London Branch, HSBC Bank plc and J.P.Morgan Securities plc.
Transactions on Armenian debut Euro bonds at the secondary market in 2014 totaled $56 million with average yield of 5.48%. —–0——
