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 the Armenian 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---