RA NA MP Babken Tunyan wrote: "The topic of 750 million Eurobonds. In response, Armenia has placed $ 750 million in Eurobonds.
The placement took place on March 5. The repayment period of Eurobonds is 10 years, the yield is 7.1%. The yield on the new Eurobonds coupon is 6.75%.
Now I try to give some questions (sometimes also, speculation) answers. Why did Finnakh not announce this placement in advance?
This is the fifth issue of Armenia's European economy in the international capital market. During the previous four releases, information on placement was published after the placement.
It is not the whim of Finnakh or the government, but is due to the regulations and requirements of the placement process. There is a clear procedure between the issuer, the distributor, the market players, which also applies to the time and details of the distribution of the message. I repeat. It has always been so. They wanted to hide something in itself, because to issue an international bond and successfully, to put it mildly, it's not bad. And a large amount of work is being done for its successful implementation.
It should be added that the issuance of Eurobonds is scheduled for the 2025 state budget by the RA Law, which is included in the 2025 loan program. External debt increases by 750 million dollars.
No. Because a significant part of that $ 750 million is bought (returned) the debt of the previous, fourth issue. In a simple example. You have taken 1000 AMD loan, repay or return 400 drams over the years. Now you are again taking a loan of 1000 AMD, from which you will fully repay the previous loan by 600 AMD.
That is why it is noted that the purely proceeds from the issuance of Eurobonds will be used to finance the state budget deficit. Net, that is, the money remaining after repaying the previous debt.
And finally, the issuance of $ 750 million bonds testify to the high level of trust in the Armenian economy by international investors.
And regardless of the amount of money and its spending, it is very important for any country and participation in that market.
