YEREVAN, May 2. /ARKA/. Demand for Eurobonds issued by Armenia almost three times exceeded their volume, said Finance Minister Vahe Hovhannisyan
“In early March, Armenia successfully issued Eurobonds worth $750 million with an interest rate of 7.1%. We could not talk about it in detail then, because by agreement with international partners there was a certain “period of silence,” Hovhannisyan said at a press conference on Friday.
According to him, compared to Eurobonds issued in 2021, the spread has increased significantly due to certain changes in the market and amounted to 2.86% (versus 2.84% in 2021). He added that this figure is quite low compared to Uzbekistan, Romania, Turkey, Jordan, Georgia.
“The nominal interest rate is quite high, because rates on the market have increased significantly in recent years. This testifies to Armenia’s international reputation and the interest of international investment companies. The main investors were companies from the UK (45%), the USA (34%), Europe (14%), the Middle East and North Africa (5%). “These are mainly institutional investment companies, pension funds, hedge funds and banks,” Hovhannisyan said.
He said that J.P. Morgan, Citibank and Credit Agricole Bank acted as underwriters.
On March 5, Armenia successfully placed Eurobonds in the international capital market in the amount of $750 million, with a yield of 7.1% and a maturity of 10 years. The coupon yield of the new Eurobonds is 6.75%. This is the fifth issue of Eurobonds by Armenia in the international capital market, envisaged by the RA law on the state budget for 2025 and included in the 2025 loan program.
The net proceeds from the issue of Eurobonds will be used to finance the state budget deficit.-0-
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