Friday, March 22 2024 20:39

ArmInfo.On March 27, the Armenia Securities Exchange (AMX) will start quoting the bonds of Electric  Networks of Armenia (ENA) CJSC, the issue volume of which is the largest among non-financial organizations, 32 billion drams.

As noted in AMX's press release: "On March 22, the CEO of the Armenia  Securities Exchange, Hayk Yeganyan, signed the decision for listing  the coupon bonds of "Electric Networks of Armenia" CJSC, according to  which the bonds of the company will be included in the Abond list of  bonds of the Armenia Securities Exchange from March 27 and will be  allowed for manual and REPO trading.  "Electric Networks of Armenia"  CJSC will list 320,000 bonds with a total nominal volume of 32  billion AMD and nominal value of 100,000 AMD. The coupon yield of the  issued bonds is 11.40%, the circulation period is 36 months. You can  learn more about listed bonds by following the link.  The placement  was implemented by "Ameriabank" CJSC from December 11, 2023 to  February 9, 2024. Bonds with a total volume of 32 billion AMD were  issued, which were fully placed.  Note that this is the largest  placement of corporate bonds in the Armenian capital market, with a  total volume of 32 billion AMD. The funds raised from the placement  of bonds will be used to refinance the loan obligations of "Electric  Networks of Armenia" CJSC. Additionally, they will ensure the  continuity of the investment program aimed at reducing electricity  losses, expanding the distribution network, reducing operating costs,  and improving the quality of service. The program also focuses on  connecting new subscribers and modernizing electricity metering  systems.  "This event is important for two reasons. Firstly, it marks  the largest bond issue in the Armenian capital market, signaling  stability in the market and fostering confidence in it. Secondly, it  sets a precedent, inspiring other companies interested in issuing  bonds and attracting investments for future development. We  anticipate strong investor interest leading to a swift acquisition of  the bonds, which will establish a positive trend in the Armenian  financial market, demonstrating the diversity of listed companies  across various sectors. This is also an attractive motive for foreign  investors," stated Hayk Yeganyan, CEO of the Armenia Securities  Exchange.

"I think that today bonds are in demand and highly profitable  financial instruments, they are safe and have several advantages, for  example, funds raised through nominal bonds are essentially  equivalent to a guaranteed bank deposit, income from bonds listed on  the Armenia Securities Exchange are exempt from income tax and non-  resident profit tax, ensuring a higher yield. I am pleased that we  have accumulated valuable experience in issuing and placing bonds on  behalf of the 'Electric Networks of Armenia' company" says Armen  Arshakyan, Director of Economics and Finance of "Electric Networks of  Armenia" CJSC.  "Ameriabank has historically carried out the largest  placements of corporate bonds in our country, to which this year was  added the placement of ENA bonds. The listing of ENA bonds on the  Armenia Securities Exchange is a logical continuation of the  successful placement process. We are confident that the active  secondary market will further improve the investment environment of  our country," says Arno Mosikyan, Director of investment banking at  Ameriabank.  

"Electric Networks of Armenia" CJSC is engaged in the distribution  and sale of electricity. The company's mission is to contribute to  economic development by providing a reliable, high-quality, and  affordable electricity supply. The total length of the company's  network is 36,000 km and serves more than 1 million consumers.  You  can purchase bonds of "Electric Networks of Armenia" CJSC through the  members of the Armenia Securities Exchange by opening a brokerage  account and submitting an bid to purchase bonds. Here is a list of  exchange members. "

Armenia Securities Exchange (AMX) is the only securities regulated  market operator in Armenia. As an integrated exchange offering, AMX  provides a full suite of services including listing, trading,  clearing, information services and alternative market solutions.  Investors receive a wide range of investment products and maximum  transparency, together with the smooth and efficient execution and  clearing of trade transactions. Being a 100% shareholder of the  Central Depository of Armenia, AMX also provides integrated  settlement solutions for both resident and non-resident clients by  utilizing the central depository's international settlement network  and relationships with global depositories.  AMX as a group has a  pivotal role in the Armenian financial system.