YEREVAN, October 27. /ARKA/. The risk premium on Eurobonds maturing in 2029 is 197 basis points, stated Armenian Finance Minister Vahe Hovhannisyan.
“Such a figure has never been recorded in our history. In other words, bonds with a similar maturity have never had such a low quotation,” he said on Monday during a discussion of the draft state budget for 2026.
Speaking about Eurobond yields, the minister said that interest rates on them reflect the real perception of Armenia among foreign investors.
“Armenia’s risk premium has declined since the beginning of the year and continued to decline sharply after the agreement signed on August 8,” he said. On September 26, 2019, Armenia, represented by the Ministry of Finance, placed Eurobonds on the international capital market for a total of $500 million with a 10-year maturity and a coupon yield of 3.95%, significantly lower than the coupon yield of the previous two bond issues.
In September of this year, the head of the Central Bank of Armenia, Martin Galstyan, stated that Armenia’s risk premium had decreased by 15-20 basis points following the initialing of the peace agreement with Azerbaijan.
On August 19, Fitch Ratings stated that the achievement of a peace agreement between Armenia and Azerbaijan is unlikely to immediately impact the ratings of both countries, but could contribute to positive medium-term trends in the credit sector.
