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ARMENIA TO ISSUE BONDS WITH 20 YEAR MATURITY FOR FIRST TIME
Noyan Tapan
Feb 1, 2008
YEREVAN, FEBRUARY 1, NOYAN TAPAN. On February 7, 2008, the RA ministry
of finance and economy will issue for the first time milestone coupon
bonds with maturity of 20 years of the total amount of 80 billion
drams (about 260.1 million USD). The head of the ministry's state debt
servicing department Arshaluys Margarian told NT correspondent that
bonds of the indicated amount will be placed within 3 years. Bonds
of 25 billion drams will be placed in 2008.
He explained that bonds whose interest rates are also a milestone for
formation of market interest rates of other bonds are considered as
milestone bonds. According to A. Margarian, it is envisaged replacing
gradually the bonds of other maturity with long-term bonds through
several big issues.
Accoridng to the press service of the Central Bank of Armenia, the
20-year maturity bonds to be issued on February 7 will be sold at
a discount on the nominal value and will be redeemed by the nominal
value. The yield of a bond coupon will be fixed at 11% annually and
be calculated with respect to bonds in circulation. The redemption
day of bonds is February 7, 2028. Agents chosen by the RA ministry of
finance and economy may participate in bond auctions. They act either
on their behalf and at their own expense or on their behalf and at the
expense of investors. There are no restrictions on potential buyers.
Noyan Tapan
Feb 1, 2008
YEREVAN, FEBRUARY 1, NOYAN TAPAN. On February 7, 2008, the RA ministry
of finance and economy will issue for the first time milestone coupon
bonds with maturity of 20 years of the total amount of 80 billion
drams (about 260.1 million USD). The head of the ministry's state debt
servicing department Arshaluys Margarian told NT correspondent that
bonds of the indicated amount will be placed within 3 years. Bonds
of 25 billion drams will be placed in 2008.
He explained that bonds whose interest rates are also a milestone for
formation of market interest rates of other bonds are considered as
milestone bonds. According to A. Margarian, it is envisaged replacing
gradually the bonds of other maturity with long-term bonds through
several big issues.
Accoridng to the press service of the Central Bank of Armenia, the
20-year maturity bonds to be issued on February 7 will be sold at
a discount on the nominal value and will be redeemed by the nominal
value. The yield of a bond coupon will be fixed at 11% annually and
be calculated with respect to bonds in circulation. The redemption
day of bonds is February 7, 2028. Agents chosen by the RA ministry of
finance and economy may participate in bond auctions. They act either
on their behalf and at their own expense or on their behalf and at the
expense of investors. There are no restrictions on potential buyers.