ArmInfo.A meeting with representatives of investment companies was held at the Ministry of Economy of Armenia, who were received by Deputy Minister Lilia Sirakanyan. This was reported by the press service of the department.
The participants discussed the capital market development program, current challenges and opportunities in the sector, steps taken to ensure stability of the investment environment, easy access to the market, the introduction of new tools and platforms, as well as to improve the financial literacy of citizens and actively attract investors.
In particular, the company representatives made their proposals to improve the state support program for the issue of shares and bonds, as well as the rating of companies, implemented by the Ministry of Economy.
In the summer of 2023, the Ministry of Economy initiated, and the RA government approved, a program of state support for the issue of shares and bonds, as well as the rating of companies. As noted in the draft decision, 10.65 billion drams will be required in the first three years to implement the activities envisaged by the project. As a result, in the next three years, according to experts, the volume of new issues of securities may amount to 97.5 billion drams.
As part of the program, beneficiaries are provided with assistance in issuing, placing and going through the listing procedure of bonds issued after the entry into force of this decision, once for each beneficiary, in the following amounts:
1) after the completion of the process of issuing, placing and listing the bonds on the stock exchange, the beneficiary is provided with a one-time assistance in the amount of 2% of the nominal value of the placement, but not more than 30 million drams;
2) for the circulation of bonds, the assistance will be 3% of the nominal volume of the placement for the first three years, but not more than 45 million drams for every 12 months of circulation.
Thus, the maximum amount of state assistance under the First Component will be 165 million drams. The subsidy will be provided for the issue of bonds in Armenian drams, with a maturity of at least 36 months at the time of issue, which were placed through a public offering, and after listing these bonds have a market maker.
The second component of the program concerns assistance in the issue (through a public offering / IPO) and listing of shares. The state reimburses up to 80% of the actual expenses incurred and confirmed by relevant documents, but not more than 50 million drams (external audit services, banking and stock exchange services).
The third form of support involves 50% reimbursement of expenses (during the first year) for obtaining and maintaining a rating from the American rating agencies Fitch, Standard and Poor's, Moody's or the European Scope Ratings. In this case, the rating is subject to compensation for at least two scales below the sovereign rating of the state, and in the case of a public placement of bonds or shares and listing on the Armenian Stock Exchange, within 18 months from the date of receiving the rating - the beneficiary will also be compensated for up to 80% of the costs for the first year (30% in addition to the previous 50%)
