ArmInfo.The placement of AMD 32bln bonds of Electric Networks of Armenia CJSC was successfully completed within a short space of time, Director General Karen Harutyunyan told reporters.
According to him, on December 18 last year, a presentation of the placement process took place, as a result of which the country's commercial banks became 36.1% owners of the CJSC's bonds, 53% - pension funds and 10.8% - retail investors. In total, we are talking about 311 investors, of which only 14 are banks and institutional investors, the remaining 297 are individuals.
Harutyunyan noted that the bond placement was the largest bond placement in terms of volume in the republic. The volumes and terms of the bond issue are comparable to the terms of government treasury bonds.
The General Director also said that the securities of Electric Networks of Armenia CJSC were placed on the stock exchange, where anyone can purchase them from the secondary market. The country's commercial banks, purchasing these bonds together with state bonds, will use the REPO instrument as a subject of medium-term and long-term collateral.
On December 18, a presentation of a bond issue in the amount of 32 billion drams was held. As part of this tranche, 320 thousand bonds were issued, each with a nominal value of 100 thousand drams, with a coupon yield of 11.4%, a circulation period of 3 years, and the frequency of coupon payments every six months. Ameriabank is the underwriter and market maker.
The company issued bonds to raise funds to refinance loans and implement an investment program. During the initial offering, 30% of the shares were already sold, and it was planned to be completed on February 9, 2024.