Tuesday, April 25 2017 13:25
Alina Hovhannisyan

Primary placement of Armenian government bonds is transferred from Central Bank`s exchange to stock exchange and issue volumes will henceforth be large

Primary placement of Armenian government bonds  is transferred from Central Bank`s exchange to stock exchange and issue volumes will henceforth be large

ArmInfo. The Ministry of Finance of Armenia, according to the recently introduced amendments to the procedure for issuing, placing, circulating and redeeming state bonds, has transferred the primary placement of government bonds from the Central Bank's exchange to the Nasdaq OMX Armenia exchange. At the same time, the volume of emissions will be enlarged. The start of the initial placement on the exchange site will start from three issues - two medium- term (MTSB) and one long-term (LTSB). Henceforth, state bonds will be issued under the international registration code ISIN.

As the press service of the exchange told ArmInfo, May 2 will host the initial placement of 20-year LTSB-AMGB2029A374 and two MDSB-AMGN36294202 (three-year) and AMGN60294227 (five- year), each of which is set at 200 billion AMD. The annual yield on the coupon of long-term bonds is set at 12.5%, the three-year and five-year medium-term bonds - 8% and 9%, respectively. For these issues, the first coupon payment will be held on October 29 of this year.

According to the Armenian Ministry of Finance, in accordance with the approved April 13 2017 new changes in the order of issuance, placement, circulation and redemption of state bonds, starting from April 25, an Internet system of transactions for state bonds for individuals will be launched, the initial placement of securities is transferred from the Central Bank's platform to the bond platform of the stock exchange.  The mechanism of the so-called "exchange auction" will also work, implying the repurchase of one debt instrument in place of the other's offer, which from the point of view of managing debt and taking into account the wishes of market participants will be a convenient mechanism for investors. According to the amendments, the terms of presentation of non-competitive applications for the placement of state bonds are also revised - they will be further submitted by the agents of the market on the next day, and by those who on the day of placement acquired state bonds on competitive bids. In the conditions of increasing the number of market participants, the conditions for the work of government debt agents in the face of financial organizations have been changed: they will no longer make an initial deposit to participate in auctions, mutual settlement will be based on the results of trades. The accession of Armenia to the world system of state bonds numbering a year ago facilitated the perception of Armenian securities on foreign markets. After receiving international codes, quotes of Armenian securities in foreign markets increased, interest to them increased, thus the gates were opened for the entry of non-residents into the Armenian market.

To noted, the Ministry of Finance, as an agent of the government, issues short-term, mid- term and long-term state bonds.  According to the results of 2016, there were in circulation 508.3 billion AMD of state bonds, of which long-term (LTSB) - 214.7 billion (42.2% on the market), medium-term (MDTS) - 212.7 billion (41.8%), short-term (STSB) - 78.8 billion (15.5%), and savings - 2.1 million AMD (0.4%). The average yield of state bonds following the results of 2016 was formed at the level of 13.1542%, with LTSB - 15.0118%, MTSB - 13.2241%, STSB - 7.8912%. The average maturity of the domestic public debt rose by the end of 2016 to 2,208 days from 2,065 days a year earlier, jumping to 2,440 days by April 2017. Due to state bonds it was planned to finance the deficit in 2005 by 53.8 billion AMD, but the actual figure for the year was 3.2 times higher - 171.01 billion AMD, while a year earlier, in 2015 the actual figure exceeded the planned figure more significantly - in 5 times - 15.6 billion against 3 billion AMD. The volume of circulating government bonds increased by 58.4% in 2016, in particular short-term almost 4 times, mid-term by 38.2%, long-term by 48.7%. With the average yield on state bonds decreased from 13.9917%, mainly due to a significant decline in the yield of short-term - from 12.2579%, with a slight decline in long-term and mid- term profitability - from 15.0142% and 13.2810% respectively. By April 1, 2017, the volume of circulating state bonds reached 511.1 billion AMD, of which LTSB - 237.7 billion (46.5% on the market), MTSB - 226.2 billion (44.3%), STSB - 44.9 billion (8.8%) , and the average yield of state bonds was formed at the level of 13.4137%, with LTSB - 14.8428%, MDSB - 13.0548%, STSB - 7.6529%.

POST A COMMENT
Input digits     


News
Tashir Group of Companies sees no risks for its business in RussiaTashir Group of Companies sees no risks for its business in Russia
Economy Minister  on the situation around cognac products: We are  ready to undergo international expertiseEconomy Minister  on the situation around cognac products: We are  ready to undergo international expertise
New head of IMF mission in Armenia meets with Minister of Territorial  Administration and InfrastructureNew head of IMF mission in Armenia meets with Minister of Territorial  Administration and Infrastructure
Economy Minister receives IMF delegation Economy Minister receives IMF delegation 
PSRC fines Electric Networks of Armenia 10 million dramsPSRC fines Electric Networks of Armenia 10 million drams
Francoise Jacob: Armenia can prove itself as a regional leader in tourism and biodiversity at COP17Francoise Jacob: Armenia can prove itself as a regional leader in tourism and biodiversity at COP17
Ardshinbank Continues to Expand Its Network of Modern BranchesArdshinbank Continues to Expand Its Network of Modern Branches
RA Central Bank tyring to resolve housing problem for border region residents RA Central Bank tyring to resolve housing problem for border region residents 
EAEU has proved its efficiency over last 10 years - EEC minister EAEU has proved its efficiency over last 10 years - EEC minister 
Armenia`s Central Bank predicts slower GDP growth of  5.1-4.6% in  2025, with a significant decline in exports and imports Armenia`s Central Bank predicts slower GDP growth of  5.1-4.6% in  2025, with a significant decline in exports and imports 
CB Governor: Armenian banking system currently has no issues in managing potential risksCB Governor: Armenian banking system currently has no issues in managing potential risks
RA CBA Chairman: The factor of the Iranian-Israeli conflict may lead  to an increase in the refinancing rateRA CBA Chairman: The factor of the Iranian-Israeli conflict may lead  to an increase in the refinancing rate
Pashinyan, IMF mission chief discuss joint programsPashinyan, IMF mission chief discuss joint programs
Armenia believes in its long-term effective cooperation with  IMFArmenia believes in its long-term effective cooperation with  IMF
Armenia to reduce its domestic debt from 2025 on - minister Armenia to reduce its domestic debt from 2025 on - minister 
Armenia, Iraq to sign memorandum of understanding in culture and tourism Armenia, Iraq to sign memorandum of understanding in culture and tourism 
Armenia`s Central Bank once again left refinancing rate unchanged at 6.75%Armenia`s Central Bank once again left refinancing rate unchanged at 6.75%
Armenia, Germany strengthening regional cooperationArmenia, Germany strengthening regional cooperation
Opposition MP meets with IMF reps, concerned over threats to  Armenia`s economy Opposition MP meets with IMF reps, concerned over threats to  Armenia`s economy 
Converse Bank Partners with IFC to Boost Trade Finance Capabilities Converse Bank Partners with IFC to Boost Trade Finance Capabilities 
Rosselkhoznadzor concerned over regular violations of quarantine  norms in flowers imported from Armenia Rosselkhoznadzor concerned over regular violations of quarantine  norms in flowers imported from Armenia 
Approximately 28,000 declarants received reimbursement for social expenses totaling 2.5 billion drams:  PashinyanApproximately 28,000 declarants received reimbursement for social expenses totaling 2.5 billion drams:  Pashinyan
Armenia`s Cabinet of Ministers  discussing  new Tax Code Armenia`s Cabinet of Ministers  discussing  new Tax Code 
Ameriabank Partners with HIF Yerevan 2025 to Boost Hospitality Investment in ArmeniaAmeriabank Partners with HIF Yerevan 2025 to Boost Hospitality Investment in Armenia
Side by Side: IDBank Launches New Program for women forcibly displaced from ArtsakhSide by Side: IDBank Launches New Program for women forcibly displaced from Artsakh
Armenia  not planning to enter the Eurobond market 6 times in 2025  and 2026.Armenia  not planning to enter the Eurobond market 6 times in 2025  and 2026.
Finance Minister  talks about possible impact of Iran-Israel conflict  on Armenia`s economyFinance Minister  talks about possible impact of Iran-Israel conflict  on Armenia`s economy
 Armenian freight carriers face challenges due to Iranian-Israeli  conflict  Armenian freight carriers face challenges due to Iranian-Israeli  conflict 
Armenia plans to reduce its budget deficit to 1% by 2030: Finance  MinisterArmenia plans to reduce its budget deficit to 1% by 2030: Finance  Minister
WB launches water-supply and irrigation improvement programme in  Armenia WB launches water-supply and irrigation improvement programme in  Armenia 
Construction model for new nuclear power unit to be determined after  survey - official Construction model for new nuclear power unit to be determined after  survey - official 
Armenia`s minister of economy on rise in labor productivity in 2024 Armenia`s minister of economy on rise in labor productivity in 2024 
SCR launches Yerevan-Batumi-Yerevan international routeSCR launches Yerevan-Batumi-Yerevan international route
In  Armenia`s insurance market, the loss ratio for OSAGO  decreased  to 73.2% by June 2025In  Armenia`s insurance market, the loss ratio for OSAGO  decreased  to 73.2% by June 2025
Dollar transactions decreased and ruble transactions increased in  Armenian interbank foreign exchange market, June 9-13, 2025Dollar transactions decreased and ruble transactions increased in  Armenian interbank foreign exchange market, June 9-13, 2025
Armenian Deputy PM, World Bank representatives discuss key areas of  collaborationArmenian Deputy PM, World Bank representatives discuss key areas of  collaboration
ARMECONOMBANK Summarizes 2024 Results with New Opportunities for ProgressARMECONOMBANK Summarizes 2024 Results with New Opportunities for Progress
How to Enjoy Summer to the FullestHow to Enjoy Summer to the Fullest
Finance Minister: In short, Armenia is characterized as a steadily  developing country with high economic growth and low inflationFinance Minister: In short, Armenia is characterized as a steadily  developing country with high economic growth and low inflation
Armenia to receive EUR 236 million loan from ADB for construction of   northern section of Sisian- Kajaran roadArmenia to receive EUR 236 million loan from ADB for construction of   northern section of Sisian- Kajaran road
On June 16, ArmSwissbank starts public placement of two dram bonds,  each worth 7 billion drams On June 16, ArmSwissbank starts public placement of two dram bonds,  each worth 7 billion drams 
Deputy Minister of Territorial Administration, IRI Ambassador discuss third Iran-Armenia high voltage power line construction progressDeputy Minister of Territorial Administration, IRI Ambassador discuss third Iran-Armenia high voltage power line construction progress
Health Fund for Children of Armenia is the Beneficiary of Health Fund for Children of Armenia is the Beneficiary of "The Power of One Dram" Program in June
Armenia to host  prestigious international wine competition  in 2026Armenia to host  prestigious international wine competition  in 2026
WANO experts get acquainted with production process at Armenian NPPWANO experts get acquainted with production process at Armenian NPP
Armenia`s Cabinet approves Isakov-Arshakunyats road construction project in Yerevan Armenia`s Cabinet approves Isakov-Arshakunyats road construction project in Yerevan 
Armenia`s Cabinet approves allocation of $1mln to Asian Development  Fund Armenia`s Cabinet approves allocation of $1mln to Asian Development  Fund 
AI Factory to become available to Armenian eco-startup environment - ministerAI Factory to become available to Armenian eco-startup environment - minister
Cooperation with Armenia will help lay foundation for AI development in region - NVIDIACooperation with Armenia will help lay foundation for AI development in region - NVIDIA
Armenia`s banking sector to tighten capital buffersArmenia`s banking sector to tighten capital buffers
Digitization of justice discussed in ArmeniaDigitization of justice discussed in Armenia
Team Group, NVIDIA, and Firebird Announce a $500 Million Megaproject to Build a Regional AI Supercomputing HubTeam Group, NVIDIA, and Firebird Announce a $500 Million Megaproject to Build a Regional AI Supercomputing Hub
Minister: $500 million  artificial intelligence plant to be  constructed in ArmeniaMinister: $500 million  artificial intelligence plant to be  constructed in Armenia
RA SRC Chairman, EEC Minister for Customs Cooperation discuss current  cooperation  RA SRC Chairman, EEC Minister for Customs Cooperation discuss current  cooperation  
Armenia to use space information for disaster risk managementArmenia to use space information for disaster risk management
In 2024, vegetable and fruit export from Armenia exceeded 144,000 tonsIn 2024, vegetable and fruit export from Armenia exceeded 144,000 tons
Ameriabank joins TOON EXPO to be held first time in MoscowAmeriabank joins TOON EXPO to be held first time in Moscow
"Plain and Simple": Financial Literacy with AraratBank
Deputy Economy Minister:  Out of 557 completed customs declarations for Armenian alcoholic beverages exporters, 70% have been accepted by the destination country`s customs Deputy Economy Minister:  Out of 557 completed customs declarations for Armenian alcoholic beverages exporters, 70% have been accepted by the destination country`s customs 
Hail damages 8,700 hectares of agricultural land - officialHail damages 8,700 hectares of agricultural land - official
Read more
Exchange rates
18.06.2025
RUB4.920.03
USD384.440.16
EUR441.80-2.74
GBP516.61-4.36
CAD281.27-2.04
JPY26.54-0.02
CNY53.48-0.02
CHF470.32-2.76