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.
