Monday, February 2 2015 16:36
Armenian government to issue second round of Eurobonds
Arminfo. The Armenian government announced plans to sell more Eurobonds in international debt markets this year in order to finance its budget deficit, the government reported.
A favorable environment has now emerged in international financial markets for the issuance of hard-currency bonds, reads a government statement issued after a weekly cabinet meeting in Yerevan. It said that proceeds from the upcoming Eurobond sale will be used for not only covering the 2015 budget deficit but also "neutralizing" negative external impacts on the Armenian economy. The Finance Ministry has taken an obligation to submit to the government a prospect of Eurobonds issue jointly with Cleary Gottlieb Steen & Hamilton LLC and the main underwriters Deutsche Bank, HSBC Bank and J.P.Morgan. The given decision is conditioned by the fact that the government of Armenia successfully implemented the first issue of Eurobonds in 2013 jointly with the above mentioned companies. The work was highly appreciated by international structures and investors.
Fitch Ratings has downgraded Armenia's Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'B+' from 'BB-'. The Outlook is Stable. The issue ratings on Armenia's senior unsecured foreign and local currency bonds have also been downgraded to 'B+' from 'BB-'. The Country Ceiling has been revised to 'BB-' from 'BB' and the Short-term foreign currency IDR affirmed at 'B', the Fitch report on Armenia says.
To recall, on January 15 Moody's Investors Service downgraded Armenia's issuer and government bond rating to Ba3 from Ba2, and changed the outlook to negative from stable, and on 30 January Fitch downgraded the rating from "BB" to "BB-" with a stable prediction.
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