YEREVAN, February 2. /ARKA/. Armenia has successfully placed another issue of USD-denominated Eurobonds in the international market, Chairman of the Central Bank Martin Galstyan told reporters on Tuesday.
He said $750 million worth Eurobonds were placed with 10 year maturity and coupon yield of 3.875%.
“The demand was very high; there has never been such a high demand for the securities issued by Armenia, which is due to several factors – at the moment international financial institutions and investors have accumulated a lot of funds, and they are looking for where to invest,” Galstyan said.
He noted that the yield on currently traded Eurobonds to be redeemed in 2025 and 2029 is 2.8% and 3.6% respectively.
According to him, it is also interesting that in April 2020 the premium risk was about 600 basis points, then in June-July it to 300 basis points and rose to 500 during the war in Artsakh, and now it has decreased again by almost half.
“That is, international investors have a clear idea of macroeconomic stability in Armenia, and this is a very important message,” Galstyan said.
The previous issue of $500 million worth Eurobonds with 10 year maturity and 4.2% yield was in 2019 September.
Armenia first issued $ 700 million worth dollar-denominated bonds in September 2013 at the yield of 6.25 percent and a maturity of 7 years.
The bulk of $ 700 million was used to repay a $ 500 million Russian loan ten years ahead of schedule. The second issue was carried out in March 2015 in the amount of $ 500 million with a yield of 7.25% and a maturity period of 10 years. -0-
