Electric Networks of Armenia enters capital market with unprecedented bond issue; Underwriter is Ameriabank

ArmInfo. "Electric Networks  of Armenia" (ENA) CJSC entered the capital market with an  unprecedented issue of bonds in the amount of 32 billion drams. As  part of this tranche, 320 thousand bonds were issued, each with a  nominal value of 100 thousand drams, with a coupon yield of 11.4%, a  circulation period of 3 years, and the frequency of coupon payments  every six months. The underwriter and market maker is Ameriabank. ENA  CEO Karen Harutyunyan announced to journalists during a briefing on  December 18 on the sidelines of an official event dedicated to the  issue.

He noted that the company issued bonds in order to raise funds to  refinance loans and implement the investment program. "This is our  first experience, I am sure that it will be successful. It is  important for us that every subscriber feels positive changes  personally. As part of the issue, our cooperation with pension funds,  with each investor, we think, will bring a new quality in this area,"  Harutyunyan said, noting that 30% of the initial placement has  already been sold, and it is planned to be completed on February 9,  2024.

In turn, Artak Hanesyan, Chairman of Ameriabank Directorate - General  Director, noted that the bank has many years of experience in  cooperation with the Electric Networks of Armenia. Attaching  importance to the fact that the issue was carried out in national  currency, he expressed hope that such an ENA initiative will  contribute to the development of the capital market of Armenia and  serve as an example for other companies. Anesyan also noted that in  connection with this issue he has expectations related to activity in  the secondary market.  Despite the fact that the main investors are  institutional investors, the head of the bank noted that through the  My Ameria application on the My Invest platform, which provides the  opportunity to organize the purchase and sale of bonds, shares,  including on more than 30 international platforms, individuals and  legal entities will also be able to purchase bonds.

"Each such experience brings us closer to the formation of a  developed capital market. A lot of work, of course, still remains to  be done to increase the confidence of not only institutional  investors, but also the public, so that both individuals and legal  entities are interested in alternative investments," he said.   Speaking at the event, Governor of the Central Bank of Armenia (CBA),  Martin Galstyan said that such a large issue of bonds in national  currency by Electric Networks of Armenia is a big event in the  domestic capital market.

"It is important that a non-financial company is entering the capital  market and I think that this will bring positive changes. I consider  this a brilliant example of cooperation between the public and  private sectors.  This is also consistent with the efforts of the  Regulator and the government aimed at developing the capital market,"  said the CBA head. He drew attention to the fact that the acquisition  of the Armenia Securities Exchange  by the Warsaw Stock Exchange has  increased the accessibility of our market for foreign investors.  Galstyan noted that the efforts of exchanges to bring standards  closer will expand opportunities for attracting investments.

The event was also attended by Deputy Prime Minister of Armenia  Tigran Khachatryan, Minister of Economy Vahan Kerobyan, Minister of  Territorial Administration and Infrastructure Gnel Sanosyan and  others.  Electric Networks of Armenia CJSC was founded in May of 2002  as merger of four state regional companies ("Yerevan Electric  Networks", "North Electric Networks", "South Electric Networks" and  "Central Electric Networks") distributing and selling electric  energy. The company is mainly engaged in regulated distribution and  sales of electric energy.  Overall spread of its grid is 36 thousand  km. Power distribution is implemented at tariffs confirmed by the  Public Services Regulatory Commission of RA. The company provides  service to more than 1mln customers.

Electric Networks of Armenia CJSC has an exclusive license for the  transmission and distribution of electricity on the territory of the  Republic of Armenia at guaranteed tariffs, calculated based on the  company's costs and an regulated rate of return on invested capital.

Ameriabank is very active in the corporate bond market of Armenia.  Ameriabank has repeatedly been   named Best Account  Operator-Custodian of Depository System in Foreign   Securities   Market.  Ameriabank received 6 awards from ®AMX AWARD-2023Ї: Best  Exchange Member in Government Bonds Market, Best Market Maker in  Government Bonds and Corporate Securities Markets, Best Issuer in  Corporate Bond Market, Best Account Operator-Custodian of Depository  System in Foreign Securities Market, Best Member of Unified System of  Securities Registration and Settlement, Best Employee of Unified  System of Securities Registration and Settlement - Sedrak Vasilyan,  Senior Specialist of Ameriabank's Investment and Depository  Operations Division.  Ameriabank is a leading institution of Armenia  and a major contributor to the Armenian economy, with assets  exceeding AMD 1 trillion. Being a dynamically developing universal  bank, Ameriabank provides a large package of innovative banking  services through its omni-channel distribution platform - an  ecosystem, and with clear focus on digital products.  The Bank has  adopted a customer-focused approach to ensure service quality and  modern banking experience in an evolving digital environment.   Ameriabank is committed to doing business responsibly and advancing  Armenia's transition towards a sustainable future.