FINANCE MINISTER: ARMENIA TO USE MONEY EARNED FROM FIRST ISSUE OF EUROBONDS FOR REPAYING RUSSIAN BAILOUT

YEREVAN, September 27. /ARKA/. Armenia’s government will use the
money earned from the first issue of dollar-denominated Eurobonds
for repaying the $500-million bailout loan taken on from Russia,
Armenian Finance Minister David Sargsyan said in an interview with
the Armenian Public Television.

On September 19, the Armenian finance ministry sold $750 million
seven-year bond to price at a yield of 6.25%, attracting $3.25 billion
in orders. The underwriters are Deutsche Bank AG, HSBC Bank plc and
JPMorgan Securities plc.

Sargsyan said that $460 million will go to repayment of the Russian
loan extended at LIBOR plus 3 interest rate, and the remaining money
will be spent on development of the national economy.

He added that a more detailed spending plan will be unveiled after
the government’s decision.

The minister also said that the issue of Eurobonds will diversify
financing sources and ensure economic growth. He finds this issue
well-timed.

Sargsyan expressed hope that the private sector, too, will start
issuing such bonds.

Earlier the Armenia’s parliament approved in the final reading a bill,
exempting nonresidents’ income earned from investing in theArmenian
government foreign-currency denominated bonds from income tax.

Armenian finance ministry says demand for the first dollar-denominated
bonds in Armenia has exceeded $3 billion. M.V.—-0—

18:20 27.09.2013