Month: September 2013

ARMENIA MARKETS SEVEN-YEAR DOLLAR BOND

Reuters
Sept 19 2013

By Sudip Roy

Thu Sep 19, 2013 4:04pm IST

LONDON, Sept 19 (IFR) – The Republic of Armenia, rated Ba2 by Moody’s
and BB- by Fitch, has announced initial price thoughts of 6.375%
area for a seven-year US dollar bond.

The senior unsecured 144a/Reg S benchmark is today’s business.

Deutsche Bank, HSBC and JP Morgan are the lead managers. (Reporting
by Sudip Roy, editing by Julian Baker)

ST. LEON ARMENIAN CHURCH WILL HOST FOOD FESTIVAL

NorthJersey.com
Sept 19 2013

Thursday, September 19, 2013

Fair Lawn – St. Leon Armenian Church will host its 77th Annual Food
and Arts Festival from Oct. 18 to Oct. 20 at the church on Saddle
River Road.

St. Leon Armenian Church parishioners will treat visitors to
traditional shish kebab, pilaf and other specialties that residents
have come to enjoy year after year. Dining on premises or “To-Go/Take
Out” remains the same as in the past, but several innovations have
been added to the weekend so that there is something for everyone.

Performances by the Zulal and Arekag choruses and two outstanding
dance groups, Agh’tamar and the Antranig Dance Ensemble will entertain
audiences.

Art enthusiasts looking for interesting media and subjects will be
charmed with the Art Exhibit featuring Armenian artists and their
works.

Avid bakers will be delighted with a “Live, Laugh, Love and Make
Choreg” instruction in the art of making the ever-popular braided
yeast rolls.

For youngsters, a basketball tourney for ages 10 and up in teams
of three for 3-on-3 basketball games will take place on Saturday
afternoon. Teams will be matched based on age and ability so beginners
through advanced are welcomed. What is an Armenian gathering without
playing a few sets of backgammon? A tournament for serious players
and a “clinic” for beginners will be featured. A sign-up board will
be onsite.

Throughout the weekend a Festival Gift Shop will feature authentic
handmade items, many crafted in Armenia by artisans. For the very
first time in its history, the parish council will offer guided tours
of the sanctuary with an introduction to Armenian Apostolic traditions
of worship.

Arekag Chorus composed of 20 young vocalists will entertain on Friday
evening. The Zulal performance will be Saturday evening. Come and
discover this trio of choreographed acapella voices that are superb.

The Antranig Dance Ensemble in traditional costumes will dance with
astounding skill.

The Akh’tamr Dance Ensemble of 20 young talented dancers will stir
audiences with lively music and dancing exploits on Sunday afternoon.

On Saturday afternoon attend Once Upon a Time. Join Armenian mavens
for “round table chats” and gain insights into Armenia to discover
never-before-known facts of an ancient heritage.

Admission is free to all events.

St. Leon is located at 12-61 Saddle River Road, Fair Lawn. Parking
is ample, although early arrival is advised for optimal spot. For
information, call church office at 201-791-2862.

From: A. Papazian

ARMENIA SETS FINAL YIELD OF 6.25% ON SEVEN-YEAR EUROBOND

Reuters
Sept 19 2013

By Davide Scigliuzzo

Thu Sep 19, 2013 8:22pm IST

LONDON, Sept 19 (IFR) – The Republic of Armenia’s has set a final yield
of 6.25% on its upcoming issue of a benchmark-sized US dollar bond.

The sovereign, rated Ba2 by Moody’s and BB- by Fitch, released initial
price thoughts of 6.375% area on the issue earlier on Thursday.

Books on the issue were heard approaching USD2bn with US orders still
to come in before the guidance revision, according to market sources.

The senior unsecured 144a/Reg S bond is expected to price later on
Thursday via Deutsche Bank, HSBC and JP Morgan. (Reporting by Davide
Scigliuzzo; Editing by Sudip Roy)

From: Baghdasarian

ARMENIA ORDER BOOK ON SEVEN-YEAR BOND APPROACHING USD2BN

Reuters
Sept 19 2013

By Davide Scigliuzzo

Thu Sep 19, 2013 6:44pm IST

LONDON, Sept 19 (IFR) – Order books on the Republic of Armenia’s new
seven-year bond are heard approaching USD2bn with US orders still to
come in, according to market sources.

Initial price thoughts for the benchmark-sized issue, which is rated
Ba2 by Moody’s and BB- by Fitch, remain in the 6.375% area.

The senior unsecured 144a/Reg S bond is Thursday’s business. Deutsche
Bank, HSBC and JP Morgan are the lead managers. (Reporting by Davide
Scigliuzzo; Editing by Sudip Roy)

ARMENIA SELLS $700 MILLION, SEVEN-YEAR BOND AT YIELD OF 6.25%, SOURCES SAYS

Wall Street Journal
Sept 19 2013

By Prabha Natarajan

Armenia came to market Thursday with a $700 million, seven-year bond
that sold to strong investor demand.

The country used the revived demand for emerging-market assets to
sell its debut bond deal.

The seven-year debt offering sold at a yield of 6.25%, and carries
a coupon of 6%, according to bankers familiar with the deal.

The initial yield talk was in the area of 6.375%.

Government borrowers from emerging-market economies have raised $17
billion this month, almost double the amount of bonds issued in the
previous three months combined, according to data provider Dealogic.

Deutsche Bank, HSBC and J.P. Morgan Chase are the banks running the
Armenia deal.

–Ben Edwards in London contributed to this article.

ARMENIANS SAYS HUNGARY MADE NO EFFORT TO RESOLVE FRICTION OVER AZERI MURDERER

Politics.hu, Hungary
Sept 19 2013

By MTI

Over the past year the Hungarian government has made almost no effort
to resolve the friction that resulted from the repatriation of an
Azeri murderer who was freed after arriving home, the head of the
self-government of ethnic Armenians said.

Azeri officer Ramil Safarov, who was sentenced to life imprisonment
for killing an Armenian in Budapest in 2004, was transferred back to
his home country on August 31, 2012 under an extradition agreement.

Although Azerbaijan formally pledged that the life sentence handed down
to him in Hungary would be directly continued when he was returned to
his homeland, the Azerbaijani president granted him clemency. Armenian
President Serzh Sargsyan announced the same day that Armenia suspended
diplomatic relations with Hungary.

Two days later State Secretary of Foreign Affairs Zsolt Nemeth summoned
the Azerbaijani ambassador to his office and condemned the Azerbaijani
step as unacceptable to Hungary in a diplomatic note.

The head of the Armenian self-government Serkisian Sevan told the press
that it is still not known what advantage Hungary had gained from
the repatriation of Safarov. The European Union could put pressure
on Azerbaijan through the Eastern Partnership programme but Hungary
has made no steps to achieve this, he added. According to Sevan, the
“total lack of interest” demonstrated by Hungary in this matter is
“shocking”.

The Foreign Ministry said in response that the Hungarian government
had taken several steps to restore Hungarian-Armenian diplomatic
links, for instance Foreign Minister Janos Martonyi sent a letter
to Armenian counterpart Edvard Nalbandjan about this on September 7,
2012. The ministry also sent a diplomatic note to the Armenian ministry
to confirm the wish to restore relations.

The Foreign Ministry initiated dialogue with the officials of the
self-government of ethnic Armenians in Hungary right after the
repatriation of Safarov, the statement added.

“It is in Hungary’s interest that Hungarian-Armenian friendship
should further deepen and cooperation between the two countries should
strengthen and broaden in every field of life, including diplomatic
relations,” the ministry said.

The ministry also said that the standing of diplomatic links between
Hungary and Armenia must not, and does not, have any effect on the
situation of ethnic Armenians in Hungary. The ministry, moreover,
rejects charges by the Armenian self-government that the government
handled ethnic Armenians in Hungary as “traitors” and that they
cannot feel safe in Hungary anymore. The ministry also rejects the
claim that the ethnic Armenians in Hungary are left out of efforts
to restore diplomatic links between Hungary and Armenia.

In line with Hungary’s constitution, ethnic minorities are part of
the Hungarian political community and are state-forming elements,
and Hungary guarantees to nurture and protect the minorities’ language
and culture, the statement said.

KING CONGRATULATES PRESIDENTS OF ARMENIA, MALTA ON NATIONAL DAY

Petra News Agency, Hashemite Kingdom of Jordan
Sept 19 2013

For newspapers……….

Amman, Sept. 19 (Petra)–His Majesty King Abdullah II on Thursday
sent cables to Armenian President Serzh Sargsyan, and President of
Malta George Abela congratulating them in his name and on behalf of
the Jordanian people and government on their countries’ national day.

The King wished the presidents continued good health and happiness
and the peoples of Armenia and Malta further progress and prosperity.

ARMENIA AIMS FOR BETTER TRADE, ECONOMIC TIES VIA CUSTOMS UNION

Belarusian Telegraph Agency, Belarus
Sept 19 2013

19.09.2013 17:23

MINSK, 19 September (BelTA) – By joining the Customs Union Armenia
intends to considerably expand trade and economic ties. The statement
was made by Ambassador of Armenia to Belarus Armen Khachatryan at
the press conference held in Minsk on 19 September to highlight the
Armenia Independence Day, BelTA has learned.

The diplomat remarked that Armenia’s declaration of intention to join
the Customs Union had been determined by national interests.

“Interests of Armenia have led to our decision to join the Customs
Union and after that we are ready to take part in forming the Eurasian
Economic Union”.

According to Armen Khachatryan, the accession of Armenia to the
integration association will open up many opportunities and will
enhance the effectiveness of trade and economic ties with the countries
of this organization. The Ambassador underlined that Armenia has
long-standing economic relations with Belarus, Kazakhstan, and Russia
and these relations will grow in the future.

Talking about the advantages Armenia can get by joining the Customs
Union, the Ambassador underlined that the free flow of commodities was
at the forefront. For instance, at present Armenia has to deal with
quotas to sell some of its products. Once part of the Customs Union
Armenia will not face the problem anymore. The Ambassador stated that
Armenia’s accession to the Customs Union does not mean the country
will scrap cooperation with the European Union. “We are not rejecting
cooperation with the European Union. The European Union has a lot to
teach us and we are ready to do it,” noted the diplomat.

RUSSIA’S EMPIRE STRIKES BACK

Slate
Sept 19 2013

Vladimir Putin’s empire-building has little to do with Russia’s
interests. It’s all about what’s good for him and his cronies.

By Anne Applebaum|Posted Thursday, Sept. 19, 2013, at 7:26 PM

“Right makes might, and not the other way around,” President Obama
said in the Rose Garden a few weeks ago. We all know what he meant:
In this age of soft power, great countries can win friends not
through the use of brute force but through their books and movies,
their sophisticated economies, their technological innovations, and,
above all, through their attractive and inspiring national ideals.

Maybe that’s true, some of the time. But for those who find soft
power difficult to wield, hard power is still available. Indeed, in
the very same week that the American president made his Rose Garden
speech, events on the other side of the globe were proving that might
certainly can make right. Even while the world’s attention was fixed
on Russian-American diplomacy in Syria, back home Russian President
Vladimir Putin was pulling off a much quieter but potentially
more significant diplomatic coup. After three years of intensive
negotiations, Armenia, Russia’s neighbor, had been on the brink of
signing an association agreement, including a comprehensive trade
agreement, with the European Union. But on Sept. 3-right in the middle
of the Syria crisis-the Armenian government abruptly declared that
it would drop the whole project. Rather than aligning itself with
the world’s largest free-trade zone and some of the world’s most
sophisticated democracies, Armenia decided to stick with Russia,
Belarus, and Kazakhstan, and to join the Eurasian Customs Union
instead.

No one pretends that Armenia was attracted by Russia’s soft power. By
way of explanation, President Serzh Sargsyan explained that Armenia
depends on Russia for it security, and that Armenia has a large
diaspora living in Russia. This sounds odd: Most security alliances,
NATO included, don’t require their members to join a customs union, and
the presence of immigrants in one country doesn’t usually affect trade
policy in another. But Armenia has been made anxious in recent weeks by
Russian diplomatic overtures toward Azerbaijan, Armenia’s main rival,
as well as by anti-immigrant rhetoric from Russian officials. The
Armenians took the hint: If they signed the trade deal with Europe,
Russia might sell more arms to their rival and expel the Armenians
who live in Russia.

The Armenians were no doubt watching Russian moves elsewhere in their
immediate neighborhood, where a distinct pattern is emerging. On Sept.

11, Russia banned the import of Moldovan wine, on the grounds that
it is a “health hazard.” Ukrainian chocolates have suffered the same
fate. Another old tactic, the use of gas pricing and supply as a tool
of political influence, is being resurrected in Ukraine as well. In
essence-and I’m summarizing here-the Russians have let the Ukrainians
understand that if they drop their own negotiations with Europe and
join the Eurasian Customs Union, the price of the gas they import
from Russia could drop by more than half.

It’s an excellent offer, so much so that-examined objectively-it seems
extraordinary that the Ukrainians have not accepted it already. But
Ukraine is hesitating, and has been for some time. Even the country’s
most Russo-philic politicians know that the decision represents not a
short-term financial decision but a long-term civilizational choice,
between the relatively open markets and open politics of Europe and
the closed world of the former Soviet Union. One Armenian opposition
politician explained the consequences of his country’s decision
to choose Russia over Europe like this: “Armenia, by choosing the
customs union instead of agreements with the EU will remain a country
of oligarchs and monopolies just like Russia.”

Advertisement

Yet when examined objectively, it seems extraordinary that the Russians
want their neighbors to make that kind of choice, too. Surely it’s in
Russia’s own interests to share borders with countries that have broad
international contacts, faster economic growth, access to Western
markets, and therefore wealthier domestic consumers, who could buy
Russian goods. Surely it’s in Russia’s own interests, in the long
term, to have similar access to Western markets itself. If Europe
did manage to craft association agreements with Armenia, Ukraine,
and Moldova, there’s no reason to think that a similar arrangement
with Russia would not eventually follow.

The explanation is as straightforward as it is sad: Russia’s ruling
elite, led by President Putin, does not act in Russia’s interests.

Russian elites act in their own interests. At the moment, they are
convinced that economic nationalism and the language of neo-imperialism
will win them popular support, and possibly private profits. I wonder
how long the rest of the Russians will put up with it.

From: Emil Lazarian | Ararat NewsPress

TAPER DELAY STIMULATES DEBT

The Wall Street Journal
Sept 19 2013

Emerging-Market Countries, Other Issuers Feast as Central Bank
Keeps Program

Borrowers dashed into credit markets a day after the Federal Reserve
decided to keep its stimulus program at full speed.

By Ben Edwards, Mike Cherney

Borrowers dashed into credit markets a day after the Federal Reserve
decided to keep its stimulus program at full speed.

Emerging-market countries and companies sold at least $5.8 billion
in dollar-denominated bonds Thursday. The burst of deals included
junk-rated Armenia’s first dollar bond.

Thursday’s bond sales put September on pace to be the most active
month for emerging-market bond issuance since May, just before worries
about the fed scaling back-or “taperingâ~@ -its easy-money policies
took hold, scaring investors away from riskier debt.

Investor appetite also was on display in the U.S. High-grade and
junk-rated firms sold at least $9 billion of bonds on Thursday.

Bond prices, which were hit hard in recent months by tapering fears,
rallied on Wednesday after the Fed announcement, pushing yields lower.

The 10-year Treasury note, after surging in price to yield 2.706%
Wednesday, ticked lower to 2.748% Thursday. The yield was at 2.87%
before the Fed’s announcement Wednesday.

Money managers and analysts say more bond sales are likely to follow,
at least in the short term, as issuers capitalize on lower borrowing
costs and some buyers resume hunting for higher-yielding and riskier
assets. Many bond investors suffered losses over the summer as yields
rose on debt of all kinds.

“The Fed not slowing down their stimulus removes a significant risk
in the market and has created investor appetiteâ~@ for emerging-market
debt, said Viktor Szabo, a fund manager at Aberdeen Asset Management,
which managed $318 billion at the end of June.

Armenia sold a $750 million, seven-year bond to price at a yield
of 6.25%. The former Soviet state, which is rated BB- by Standard
& Poor’s, attracted $3.25 billion of orders, according to the
underwriters on the deal.

Armenia was quickly followed by Colombia and a host of agency
and corporate borrowers including Brazilian development bank Banco
Nacional de Desenvolvimento Econômico e Social, or BNDES, and Russian
engineering firm Borets.

Bankers are lining up even more deals, with road shows planned for
the Hungarian Development Bank.

“We are now likely to see a wave of emerging-market issuers come to
market to take advantage of still very cheap financing conditions
and likely pent-up demand from investors,â~@ said Tim Ash, an
emerging-market analyst at Standard Bank.

Investment-grade corporate bonds are alluring as well, analysts say.

Jennifer Vail, head of fixed-income research at U.S. Bank Wealth
Management, said the lack of tapering provides an opening for
investors. Previously, investors were concerned that rates would spike,
and bond prices fall, if the Fed this month announced a tapering of its
$85 billion in monthly bond purchases. But after the Fed’s surprise
decision, many market experts believe it will be a few months before
the tapering begins. So the threat of rising interest rates–which
decreases the prices of outstanding bonds–is gone for now.

On Thursday, single-A-rated power-systems company Cummins Inc. sold
$1 billion of bonds, its first bond deal since 2002, according to
Dealogic. Junk-rated Sirius XM Radio Inc., which has tapped the
bond market multiple times this year, sold $650 million, aimed at
refinancing existing debt.

Other companies selling debt in the U.S. market Thursday include
Nissan Motor Acceptance Corp., Reinsurance Group of America Inc. and
Swedish bank Svenska Handelsbanken.

Ms. Vail said she sensed a greater opportunity in bonds from banks
and financial firms, given that those companies are likely to continue
making improvements as the economy recovers.

“Now we have this, we’ll call it a surge of fresh air, for a couple
of months,â~@ she said. “So that gives the opportunity to add to
those positions without immediate fear of a spike in rates.â~@

Companies in Asia took advantage of the reprieve offered by the Fed,
too. This week saw the most new share sales in Asia since May, while
Asian companies outside of Japan have sold $15 billion of bonds so
far this month, the largest sum in four months.

To be sure, memories of the summer’s selloff in bonds and
emerging-market assets are still fresh, prompting many fund managers
to be more circumspect about their bets.

“A lot of people have reassessed their allocations,â~@ said Nick Hayes,
a fund manager at AXA Investment Managers, which has â~B¬568 billion
($768 billion) of assets under management. “People will start to
differentiate within emerging markets now between what are structurally
challenged economies and what economies look pretty strong but were
just beaten up in the selloff.â~@

“It was because of tapering that people sold emerging-market assets,â~@
he added. “But I don’t think everybody that sold will buy back in.â~@

-Serena Ruffoni, Prabha Natarajan and Prudence Ho contributed to
this article.