FIRST AUCTION OF BONDS WITH 20-YEAR MATURITY HELD
Noyan Tapan
Feb 14, 2008
YEREVAN, FEBRUARY 14, NOYAN TAPAN. The primary placement of RA state
long-term milestone coupon (AMGB20072283 issue) bonds with 20-year
maturity took place on February 14. Four agenst participated in
the auction. NT was informed by the Central Bank of Armenia (CBA)
press service that the total amount of offers at the auction made 3
bln 571 mln 490 thousand drams (about 11.5 mln USD), the amount of
non-competitive offers made 440 mln drams, the total amount of offers
satisfied made 3 bln 571 mln 490 thousand drams, the maximum yield
of placed bonds made 11% and the weighted average yield made 10.9755%.
It is noteworthy that it is for the first time that the RA ministry
of finance and economy issues bonds of this maturity of the total
amount of 80 bln drams. NT correspondent was informed by the head of
the ministry’s state debt servicing department Arshaluys Margarian
that the bonds of the indicated amount will be placed within three
years. Bonds of 25 bln drams will be placed in 2008.
In his words, bonds whose interest rates are a milestone for formation
of interest rates of other state bonds are considered as milestone
bonds. It is envisaged that bonds of other maturity will be gradually
replaced by long-term bonds through several large issues.
According to the CBA press service, 20-year maturity bonds issued
on Febraury 7 will be sold at a discount on the nominal value and
will be redeemed by the nomunal value. The annual yield of bond
coupons will make 11% and will be calculated with respect to bonds
in circulation. Coupon payments will be made every six months. The
day of bonds’ redemption is February 7, 2028.