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May 17 2013
Armenia plans Eurobond debut in 2013
bne
May 17, 2013
Armenia is planning to make its debut on the Eurobonds market this
year, the prime minister said on May 16. The move sees Yerevan seeking
to leverage the ongoing emerging markets bond rally as it's forced to
replace development funding, which is drying up.
Prime Minister Tigran Sargsyan announced that a political decision to
issue a Eurobond has already been made. A $500m bond is expected
before the end of 2013. The PM told government officials that the
Eurobond will establish a benchmark to help private Armenian companies
tap international capital markets at better rates, News.am reported.
"This is a new page in our economic policy, and not only in the
management of public finances. We create opportunity for the private
sector to attract cheaper funds from the financial markets," Sargsyan
said.
Finance Minister Davit Sargsyan told the cabinet meeting that as
international financial institutions no longer consider Armenia a
low-income country, the flow of preferential loans and other
development funding is expected to gradually dry up. As a result,
Armenia needs to find its own sources of finance, he said. "This means
the issuance of Eurobonds should start," he insisted.
The issue will also enable Yerevan to pay back loans from Russia,
Armenia Today reports. The government says it is planning to employ
Cleary Gottlieb Steen & Hamilton LLC to advise on the issue and
provide technical assistance.
http://www.bne.eu/story4964/Armenia_plans_Eurobond_debut_in_2013
May 17 2013
Armenia plans Eurobond debut in 2013
bne
May 17, 2013
Armenia is planning to make its debut on the Eurobonds market this
year, the prime minister said on May 16. The move sees Yerevan seeking
to leverage the ongoing emerging markets bond rally as it's forced to
replace development funding, which is drying up.
Prime Minister Tigran Sargsyan announced that a political decision to
issue a Eurobond has already been made. A $500m bond is expected
before the end of 2013. The PM told government officials that the
Eurobond will establish a benchmark to help private Armenian companies
tap international capital markets at better rates, News.am reported.
"This is a new page in our economic policy, and not only in the
management of public finances. We create opportunity for the private
sector to attract cheaper funds from the financial markets," Sargsyan
said.
Finance Minister Davit Sargsyan told the cabinet meeting that as
international financial institutions no longer consider Armenia a
low-income country, the flow of preferential loans and other
development funding is expected to gradually dry up. As a result,
Armenia needs to find its own sources of finance, he said. "This means
the issuance of Eurobonds should start," he insisted.
The issue will also enable Yerevan to pay back loans from Russia,
Armenia Today reports. The government says it is planning to employ
Cleary Gottlieb Steen & Hamilton LLC to advise on the issue and
provide technical assistance.
http://www.bne.eu/story4964/Armenia_plans_Eurobond_debut_in_2013