Thursday, March 26 2015 14:14
Finance Ministry of Armenia to distribute $487 million from second issue of foreign exchange bonds
ArmInfo. Finance Ministry of Armenia will distribute $487 million from the 2nd issue of foreign exchange bonds. The Government adopted a relevant enactment today, on March 26.
First Deputy Minister of Finance Pavel Safaryan said the March 19 issue totaled $500 million, including $487.8 million were received from placement. $205 million of the total were used to buy-out the foreign exchange bonds of the first issue to be redeemed by 2020, including par value and coupon payments. The remaining funds will be provided to the Treasury of Armenia. This will increase the average maturity of foreign exchange bonds from 5.5 years to 7.8 years. The future payment on foreign exchange bonds will be reduced as well (in 2020 the country will need to repay 500 million instead of 700 million).
The underwriters of the second issue are the same companies: Deutsche Bank AG, HSBC, J.P.Morgan Securities. The fiscal agents are Citybank offices in London and New York.
Armenia issued euro bonds in the amount of $700 million for the first time in Sept 2013. The issue was mainly used to redeem the expensive loan from Russia.