Armenia’s debut eurobonds to help develop private sector: Minister of Finance

27.09.2013 14:33
Armenia’s debut eurobonds to help develop private sector: Minister of Finance

YEREVAN, September 27. /ARKA/. Armenia’s debut issue of Eurobonds will enable the country attracting major investments into the private sector, Armenian minister of finance David Sargsyan said in his interview to Public Television of Armenia.

Armenia, for the first, time, issued Eurobonds worth a total of $700 million, with a redemption period of 7 years and yield at 6%. The main underwriters of the issue were Deutsche Bank AG, London Branch, HSBC Bank plc and J.P.Morgan Securities plc. The demand for the first dollar bonds went beyond the $3 billion threshold.

“Sustainable Armenian private sector needs to develop today, and financing should be attracted for that, but if the country is not issuing Eurobonds and is not known on the global financial market investors cannot be attracted. I mean major investments like $50 million, $100 million, $150 million”, Sargsyan said.

According to the minister, Armenia is now on transition from the group of poor to the one of mid developed countries and should on its own seek for funding in the global market.

The Eurobond issue was an important step to ensure recognisability, the minister said.
Sargsyan said developing countries like Armenia are becoming quite attractive for investors as investments risk are increasing in the developed countries.

Armenia’s government approved the first Eurobond issue in May. Under revised legislation non-residents’ profit from investments in government bonds are exempt from tax for boosting investments.–0—


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