YEREVAN, May 2. /ARKA/. Armenia does not plan to issue Eurobonds in 2025-2026, said Armenian Finance Minister Vahe Hovhannisyan.
“The plans are as follows at the moment. The 2025 budget included a plan to issue bonds. Our plans for the medium term are being presented and discussed,” he said at a press conference on Friday.
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 Armenian law on the 2025 state budget and included in the 2025 loan program.
Net proceeds from the Eurobond issue will be used to finance the state budget deficit.
According to the Ministry of Finance, the demand for Eurobonds issued by Armenia almost three times exceeded their volume. The main investors were institutional investment companies, pension funds, hedge funds and banks from the UK (45%), the US (34%), Europe (14%), the Middle East and North Africa (5%). The underwriters were J.P. Morgan, Citibank and Credit Agricole Bank.
Electronic bond issues by Armenia
Armenia carried out the first issue of Eurobonds on September 19, 2013, when Eurobonds were issued for $700 million with a 6% annual yield and a maturity of 7 years – until March 30, 2020. At the same time, as of July 2021, bonds from the first issue are in circulation for $500 million, since the Ministry of Finance of Armenia bought out $200 million.
The second issue was carried out on March 26, 2015, in the amount of $500 million and with a yield of 7.15%, with a maturity of 10 years – until March 26, 2025.
On September 26, 2019, Armenia, represented by the Ministry of Finance, placed Eurobonds on the international capital market for a total volume of $500 million with a 10-year maturity and a coupon yield of 3.95%, which is significantly lower than the coupon yield of the bonds of the previous two issues.
On February 4, 2021, Armenia successfully placed Eurobonds for $750 million with a maturity of 10 years and a coupon yield of 3.6%. As the Prime Minister of the Republic of Armenia Nikol Pashinyan noted at the time, the demand exceeded $3 billion, the placement took place on the most favorable terms in the history of Armenia – at the lowest rate. It was noted that Armenia would direct part of the funds from the Eurobonds to the formation of a “financial cushion”. In October 2024, the Armenian government bought $188 million from the $500 million Eurobonds with a maturity date in March 2025. -0-
