ArmInfo. On July 14, the unprecedented auction on the placement of the maximum volume of government bonds took place at the AMX Armenian Stock Exchange.
As ArmInfo was told in the press service of AMX, these were long-term government bonds of the issue AMGB1029A292, on which the largest volume of 60 billion drams was placed today. The weighted average yield was 7.92%, the cutoff yield was 8.08%, and the annual coupon yield was 9%.
According to the source, the maturity of these bonds is set at 10 years, and the periodicity of coupon payments is every six months.
The entire volume of these government bonds put up for auction today was fully satisfied. Moreover, the demand for them amounted to 159 billion drams, exceeding the offer 2.7-fold. This phenomenon confirms the stability of the financial market and confidence in government bonds.
The placement of these government bonds took place according to the new electronic trading system, launched at AMX in January 2020, which will become the basis for ensuring the accessibility to the secondary securities market and direct access to the market (DMA - Direct Market Access).
Retail investors can purchase these bonds through the online platform gp.minfin.am, operated by the exchange. This platform allows individuals to purchase government bonds online and without an intermediary. According to the Ministry of Finance of the Republic of Armenia, in 2019 over 535 million drams were traded through the gp.minfin.am platform.
To recall, the issue of 10-year long-term government bonds AMGB1029A292 took place on April 29, 2019 with an issue volume of 200 billion drams (this is the maximum amount provided for government bonds), with a coupon yield of 9% per annum. These 200 billion drams were placed in stages and as of July 14, the volume of 151.297 billion drams, including the above 60 billion drams, was already placed. The redemption of this issue of government bonds will take place on October 29, 2029.