Opinion: issue of eurobonds may spur Armenia’s securities market

20.09.2013 17:28
Opinion: issue of eurobonds may spur Armenia’s securities market

YEREVAN, September 20. /ARKA/. The issue of Eurobonds may spur Armenia’s securities market, Tatul Manaserysan, an economist and the head of the Alternative think tank, said in an interview with ARKA News Agency.

Armenia issued the first Eurobonds on Thursday setting the final yield of 6%. The maturity period is seven years. The bonds were expected to price later on Thursday via Deutsche Bank, HSBC and JP Morgan.

“If we manage to retain the ratings given to Armenia, then not only the government, but also Armenian companies will be issuing their bonds and selling them at western markets,” he said.
Armenia enjoys Ba2, Stable, from Moody’s and BB-, Stable, from Fitch.

Manaseryan said Armenia’s rating can be called weighty, even in comparison with developed western countries.

“I think we should take pat in deals at international financial markets sooner or later, and this [the issue of Eurobonds - ARKA] is a step forward and a positive phenomenon,” he said in his interview. “The higher demand for these bonds abroad, the better.”

Speaking about demand for Armenian bonds, the economist pointed out two mechanisms.
The first mechanism, he said, is a natural demand – buyers at financial markets know terms, stability and reliability of bonds and show interest themselves, and the second is when security flotation companies find purchasers.

In his opinion, demand for Armenian Eurobonds is due to underwriters’ professional work as well as their experience and reputation, since Armenia is making its first steps at international financial markets.

According to Reuters, demand for Armenian Eurobonds already exceeds $2 billion, not considering demand in the United States.

Earlier the Armenia’s parliament approved in the final reading a bill, exempting non-residents’ income earned from investing in the Armenian government foreign-currency denominated bonds from income tax. ---0---


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