YEREVAN, April 18. / ARKA /. The average yield on Armenian Eurobonds in February 2015 rose to 6.63% from 6.33% in January, according to the monthly bulletin of the Central Bank of Armenia for February. The yield in February 2014 was 5.76%, it said.
The rise in the yield is attributed to instability of the geopolitical situation in the region and the strengthening USD across the world.
According to the Central Bank of Armenia, $24.2 million worth transactions were made with Armenian Eurobonds in February 2015 in the secondary market, down from $32.3 million in January.
Armenia first issued $700 million worth dollar-denominated bonds in September 2013 at the yield of 6.25 percent. The bulk of $700 million was used to repay a $500 million Russian loan ten years ahead of schedule.
Armenia raised $487.84 million from the second issue of 10-year dollar bond on March 19 paying a yield of 7.5%. International law firm Cleary Gottlieb Steen & Hamilton LLC was hired by the Armenian government to act as an international consultant for the issue, while Deutsche Bank, HSBC Bank and JP Morgan acted as underwriters.
The government said it would use the Eurobond proceeds to buy back up to $200 million of the previous dollar bond issue.-0-
