ArmInfo.On March 27, the Armenia Securities Exchange (AMX) will start quoting the bonds of Electric Networks of Armenia (ENA) CJSC, the issue volume of which is the largest among non-financial organizations, 32 billion drams.
As noted in AMX's press release: "On March 22, the CEO of the Armenia Securities Exchange, Hayk Yeganyan, signed the decision for listing the coupon bonds of "Electric Networks of Armenia" CJSC, according to which the bonds of the company will be included in the Abond list of bonds of the Armenia Securities Exchange from March 27 and will be allowed for manual and REPO trading. "Electric Networks of Armenia" CJSC will list 320,000 bonds with a total nominal volume of 32 billion AMD and nominal value of 100,000 AMD. The coupon yield of the issued bonds is 11.40%, the circulation period is 36 months. You can learn more about listed bonds by following the link. The placement was implemented by "Ameriabank" CJSC from December 11, 2023 to February 9, 2024. Bonds with a total volume of 32 billion AMD were issued, which were fully placed. Note that this is the largest placement of corporate bonds in the Armenian capital market, with a total volume of 32 billion AMD. The funds raised from the placement of bonds will be used to refinance the loan obligations of "Electric Networks of Armenia" CJSC. Additionally, they will ensure the continuity of the investment program aimed at reducing electricity losses, expanding the distribution network, reducing operating costs, and improving the quality of service. The program also focuses on connecting new subscribers and modernizing electricity metering systems. "This event is important for two reasons. Firstly, it marks the largest bond issue in the Armenian capital market, signaling stability in the market and fostering confidence in it. Secondly, it sets a precedent, inspiring other companies interested in issuing bonds and attracting investments for future development. We anticipate strong investor interest leading to a swift acquisition of the bonds, which will establish a positive trend in the Armenian financial market, demonstrating the diversity of listed companies across various sectors. This is also an attractive motive for foreign investors," stated Hayk Yeganyan, CEO of the Armenia Securities Exchange.
"I think that today bonds are in demand and highly profitable financial instruments, they are safe and have several advantages, for example, funds raised through nominal bonds are essentially equivalent to a guaranteed bank deposit, income from bonds listed on the Armenia Securities Exchange are exempt from income tax and non- resident profit tax, ensuring a higher yield. I am pleased that we have accumulated valuable experience in issuing and placing bonds on behalf of the 'Electric Networks of Armenia' company" says Armen Arshakyan, Director of Economics and Finance of "Electric Networks of Armenia" CJSC. "Ameriabank has historically carried out the largest placements of corporate bonds in our country, to which this year was added the placement of ENA bonds. The listing of ENA bonds on the Armenia Securities Exchange is a logical continuation of the successful placement process. We are confident that the active secondary market will further improve the investment environment of our country," says Arno Mosikyan, Director of investment banking at Ameriabank.
"Electric Networks of Armenia" CJSC is engaged in the distribution and sale of electricity. The company's mission is to contribute to economic development by providing a reliable, high-quality, and affordable electricity supply. The total length of the company's network is 36,000 km and serves more than 1 million consumers. You can purchase bonds of "Electric Networks of Armenia" CJSC through the members of the Armenia Securities Exchange by opening a brokerage account and submitting an bid to purchase bonds. Here is a list of exchange members. "
Armenia Securities Exchange (AMX) is the only securities regulated market operator in Armenia. As an integrated exchange offering, AMX provides a full suite of services including listing, trading, clearing, information services and alternative market solutions. Investors receive a wide range of investment products and maximum transparency, together with the smooth and efficient execution and clearing of trade transactions. Being a 100% shareholder of the Central Depository of Armenia, AMX also provides integrated settlement solutions for both resident and non-resident clients by utilizing the central depository's international settlement network and relationships with global depositories. AMX as a group has a pivotal role in the Armenian financial system.
