Armenian MP explains $750mln Eurobon issue by Ministry of Finance 

ArmInfo. Armenia has placed Eurobonds worth $750 million, which indicates a high level of confidence among international investors in the republic's economy.  This was stated by Babken Tunyan, a member of parliament from the  ruling Civil Contract faction, on  social media. 

On March 14, the website of the Ministry of Finance of Armenia  reported that on March 5, 2025, the Republic of Armenia successfully  placed Eurobonds worth $750 million with a maturity of 10 years  (maturity date March 12, 2035).

The yield on placement was 7.1%, the coupon income was 6.75%  (placement cost 97.524%). It was noted that this is the fifth issue  of Eurobonds by Armenia on the international capital market, which  was envisaged by the RA Law and  included in the Borrowing Program for 2025. The net proceeds from the  issue of Eurobonds will be used to finance the state budget deficit  (609 billion drams - ed.).

Despite this, the authorities' called the issue of  Eurobonds . In  particular, public figure Artur Danielyan noted that the Eurobonds  were issued on March 12 on the stock exchange in Germany and this  fact was kept in the strictest confidence. , - he  wrote on Facebook.

Babken Tunyan draws attention to the fact that this is already the  fifth issue of Eurobonds by Armenia on the world capital market,  information about the four previous ones was also made public only  after the placement.

, - he noted. At the same time, the  parliamentarian claims that as a result of this issue, Armenia's  external debt will not increase by $750 million, .

, he emphasized.

Earlier, Finance Minister Vahe Hovhannisyan reported that in 2023,  the Armenian government managed to make an early redemption of part  of the Eurobonds maturing in 2025 in the amount of $500 million  (issued in 2015) - approximately $187 million, thereby mitigating the  risks associated with co-financing in the future.

The debut issue of Armenian Eurobonds took place on September 19,  2013, in the amount of $700 million, with a maturity of 7 years -  until September 30, 2020. The yield on the placement was 6.25%. With  them, the government early repaid the stabilization loan taken from  Russia in the amount of $500 million. The main underwriters were  Deutsche Bank AG, London Branch, HSBC Bank plc and J.P. Morgan  Securities plc. The second tranche of sovereign bonds in the amount  of $500 million, with a maturity of 10 years and a yield of 7.5%, was  issued by Armenia on March 19, 2015. The proceeds from the second  issue of Eurobonds amounted to $488 million. Part of the amount  received from the sale of these bonds, $199.9 million, was used to  buy back the first issue of Eurobonds maturing in 2020. Armenia  issued the third tranche of sovereign bonds in foreign currency in  the amount of $500 million, with a coupon yield of 3.95% and a  maturity of 10 years, on September 19, 2019. The placement of the 3rd  tranche, which took place on September 26, 2019, raised $489.9  million, and at the same time, a partial redemption of $402.4 million  of the 1st issue foreign currency bonds took place, for which $427.9  million was paid (including the coupon amount).

The main underwriters of the Armenian Eurobonds of the 3rd issue were  J.P. Morgan Securities plc. and City bank. In order to ensure  accessibility not only to foreign but also to local investors, the  sovereign Armenian Eurobonds of the 3rd issue began to be listed on  the AMX Armenian Stock Exchange in November.

Access to Armenian Eurobonds for local investors was opened thanks to  the active cooperation of the Central Depository of Armenia (CDA)  with its partner Clearstream Banking Luxemburg. By the end of  December 2024, Armenia's public debt in dollar terms increased by  approximately $997 million - to $12 billion 842.2 million (from $11  billion 845.4 million by the end of 2023). In dram equivalent, the  figure increased from 4 trillion 794.9 billion to 5 trillion 092.7  billion.