ArmInfo. Armenia started the year with a very strong positive signal. Prime Minister Nikol Pashinyan said.About this at a meeting held on February 4
Opening the brackets, the head of the Armenian government recalled that the successful placement of Armenian sovereign Eurobonds, as a result of which $ 750 million was raised. It is very important, Nikol Pashinyan continued, that for the first time in history, Eurobonds were placed at the lowest interest rates. This fact is an important signal for the domestic economy, since guarantees of macroeconomic stability are being formed. In the process of overcoming the post-war shocks, we can talk about the first serious signal testifying to the confidence of international investors in the future of Armenia and the policy implemented by the government of the country. Nikol Pashinyan added that the funds raised will be used to finance the state budget deficit in 2021. "We are starting the year with a very strong positive trend, and let's hope that this trend will lead to a chain reaction," the Prime Minister said.
He recalled that the placement of Eurobonds was made at a rate of 3.8% versus 4.2% for Eurobonds placed in 2019 in the amount of $ 500 million. Demand, according to the head of government, was very high - about $ 3 billion, but at this stage the government made a decision to limit itself to $ 750 million. Earlier, ArmInfo reported that the price of new tranches of Armenian sovereign Eurobonds continues to grow actively. Armenia has placed among international investors the 4th issue of 10-year debt securities in the amount of $ 750 million. The established annual yield of the 4th issue bonds was lower than the yield of the 3rd issue - 3.875% versus 4.625%. Investors' demand for Armenian debt securities exceeded $ 2.5 billion. The initial target for the yield of Eurobonds to maturity in February 2031 was 4.375-4.5% per annum. The main underwriters of the 4th tranche were City Bank, J.P. Morgan Securities plc. and HSBC Bank Plc. Note that Armenia issued the previous third tranche of Eurobonds on September 19, 2019 for a period of 10 years in the amount of $ 500 million, the second tranche was also issued for the same period in the amount of $ 500 million and was issued on March 19, 2015, and the debut issue took place on September 19, 2013 in the amount of $ 700 million for a period of 7 years. The yield on the first tranche was 6.25%, the securities were redeemed by September 30, 2020. The yield on the second tranche was 7.5%. J.P. Morgan Securities plc were the main underwriters of the 3rd issue of the Armenian Eurobonds. and City bank. To ensure the availability of not only foreign, but also local investors, sovereign Armenian Eurobonds of the 3rd issue began to be quoted on the AMX Armenian Stock Exchange. Local investors' access to Armenian Eurobonds was opened thanks to the active cooperation of the Central Depository of Armenia (CDA) with a partner, Clearstream Banking Luxemburg.
