ArmInfo. European Floating-rate coupon bonds issued by the European Bank for Reconstruction and Development (EBRD) have been successfully placed on the corporate securities allocation platform of the Armenia Stock Exchange (AMX). Converse Bank, a member of the AMX, served as the underwriter for the placement.
The total volume of the issuance amounted to AMD 5,000,000,000, of which 400 bonds with a nominal value of AMD 10,000,000 each - totaling AMD 4,000,000,000 - were placed via the AMX corporate securities allocation platform.
The bonds have a maturity period of 36 months, with a floating coupon rate linked to the yield of Armenian 6-month T-Bills and a semi-annual payment frequency.
According to AMX data, the placement results are as follows: Amounts of the total bids: AMD 3,320,000,000 Amounts of the total accepted bids: AMD 2,320,000,000 Weighted average price: 100.0132 Cut-off price: 100.0000 Cut-off yield: 6.8359 Weighted average price yield: 6.8310 Auction max price: 100.0960 Auction min price: 100.0000 Percent of accepted bids by cut-off price: 100% It should be noted that the EBRD's entry into the Armenian capital market is the Bank's latest investment initiative in the Armenian market and is aimed at developing financial instruments in local currency, expanding financing opportunities, and deepening the Armenian financial market. The placement of EBRD bonds on the Armenian Stock Exchange (AMX) will allow them to be used in repo transactions with the Central Bank of Armenia, thereby significantly increasing the liquidity and investment attractiveness of these securities on the secondary market.
Recall, the first dram-denominated bonds of the European Bank for Reconstruction and Development (EBRD) appeared on the Armenian capital market in February 2014, totaling 2 billion drams. At that time, the coupon yield was also floating, determined by the sum of the short-term bond yield published by the Central Bank of Armenia and a 0.3% margin intended for the payment of subsequent coupons. The yield at the cutoff price for the EBRD bonds (formed at auction) was 8.555%. The underwriters for the 2014 EBRD bond issue were Ameriabank and HSBC Bank Armenia (which exited the market in 2024). This bond issue was the first public exchange offering of corporate dram bonds issued by an international institution in Armenia.
Converse Bank, a leading player in the Armenian capital market, is the underwriter of the current issue. In recent years, the bank has repeatedly acted as an underwriter for corporate bond placements for a number of companies. The placement of EBRD dram bonds is another important project for the Bank, highlighting its experience and specialization in organizing capital market transactions and investment solutions.
