ArmInfo.The volume of applications for the purchase of Armenian sovereign bonds in international markets amounted to $ 2.5 billion. The organizer of the issue opened a book of applications on the eve when it announced the start of placement of 10-year Eurobonds in the amount of $ 500 million with an initial yield of 4.625% per annum.
Significant prevalence - by 5 times - of demand over supply led to a decrease in the yield rate to 4.2% per annum, and the coupon rate (Coupon Rate) was 3.95%.
Earlier, ArmInfo reported that the Government of Armenia on July 4 approved a draft decision "On Establishing the Specifics of Organization of Procedures for Acquiring Services for the Issue, Placement and Redemption of Eurobonds", thereby starting the preparatory process for the placement of the third tranche of Eurobonds and refinancing of debt on previously issued securities .
The third tranche of Armenian Eurobonds, released the day before, was an expected event. Indeed, according to the schedule of repayment of government debt, until 2054, the most peak in servicing the public debt will be 2020 and 2025. In 2020, Armenia will have to "pay out" about 417 billion drams or $ 857 million (the calculated exchange rate of the Armenian dram to the dollar is $ 1 = 486.55 drams), and in 2025, to repay the principal amount of all government debt formed at the end of December 2018 The price of the issue will be about 406 billion drams ($ 834 million). In both cases, $ 500 million of this amount are repayments on Eurobonds. It was on the basis of these calculations that the experts predicted the issue before / or in 2020 - before the next payment of the debt on the first tranche, which is scheduled for September 30, 2020. It should be noted that today Armenia has carried out two issues of Eurobonds. The first issue was carried out on September 19, 2013, Eurobonds worth $ 700 million were issued with a maturity of 7 years, until September 30, 2020. The yield on the placement was 6.25%. The government repaid ahead of schedule a $ 500 million stabilization loan taken from Russia. The main underwriters were Deutsche Bank AG, London Branch, HSBC Bank plc and J.P. Morgan Securities plc. The average yield of these Armenian sovereign securities is about 3.2%.
The second tranche of sovereign bonds in the amount of $ 500 million for a period of 10 years and with a yield of 7.5% was implemented by Armenia on March 19, 2015. Proceeds from the second issue of Eurobonds amounted to $ 488 million. Part of the amount received from the sale of these bonds in the amount of $ 200 million went to the redemption of the first issue of bonds with maturity in 2020. The remaining amount was transferred to the single treasury account of Armenia and sent to the budget system of the country. The average yield is currently estimated at 3.9%.