Risk premium on Armenian Eurobonds issued in 2025 falls to 227 basis points following signing of Washington Declaration

YEREVAN, November 12. /ARKA/. According to  Finance Minister Vahe Hovhannisyan, the risk premium on Eurobonds issued by Armenia in 2025 has decreased after the signing of the Washington Declaration.

He elaborated that the country’s risk premium for 10-year Eurobonds issued in March 2025 was 286 basis points (or 2.86%), but by the end of September, after the signing of the Washington Declaration on August 8, it had reduced to 227 basis points.

“This represents a historically low figure, which allows us to reiterate that we are viewed as a nation pursuing a balanced and responsible policy, operating within our means, while also making wise, future-oriented investments,” the minister remarked.

On March 5, 2025, Armenia issued $750 million in Eurobonds on the international capital market, with a yield of 7.1% and a maturity of 10 years. Armenian Central Bank Governor Martin Galstyan informed ARKA in early May that the demand for these Eurobonds reached $2.5 billion.

On August 19 of this year, Fitch Ratings indicated that the peace agreement between Armenia and Azerbaijan is unlikely to have an immediate effect on the ratings of both nations, but could foster positive medium-term trends in the credit sector.

Galstyan noted in September of this year that Armenia’s risk premium had decreased by 15-20 basis points following the initialing of the peace agreement with Azerbaijan.

In October, Hovhannisyan highlighted that after the signing of the Washington Declaration, the risk premium on Armenian Eurobonds hit historical lows, specifically mentioning that the risk premium on Eurobonds maturing in 2029 was 197 basis points.-0-

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