Armenian Eurobonds should become more attractive to investors
25.10.2013,
14:56
Armenia has quite much to do for improving the quality of its debut and the next sovereign issues to increase attractiveness of the bonds to investors, head of investment and banking operations at Ameriabank Arno Mosikyan said.
YEREVAN, October 25. /ARKA/. Armenia has quite much to do for improving the quality of its debut and the next sovereign issues to increase attractiveness of the bonds to investors, head of investment and banking operations at Ameriabank Arno Mosikyan said.
On September 19 Armenia issued its first Eurobonds worth $700 million with redemption period of 7 years and yield of 6%. The main underwriters of the issue were Deutsche Bank AG, London Branch, HSBC Bank plc and J.P.Morgan Securities plc. According to the country’s ministry of finance, the demand for the first dollar bonds exceeded $3 billion threshold the first days after the placement.
“There should come other issues for building a complete yield curve at least up to the 10-year period point. There should be relations developed with rating agencies, particularly for obtaining the sovereign rating from Standard & Poor’s we lack at the moment. There should be regular roadshows and meetings with investors arranged during important and key events on the international loan capital market”, Mosikyan said in his interview to ARKA.
Mosikyan said the debut issue has been an important step toward development of the practice and of the state finance management system in general.
“We are facing the Wall Street and City investors now who have purely commercial interests and are less emotional to the issuer”, Mosikyan said. According to him, these investors are interested in at least credit risk (consequently, credit rating) level maintained before the redemption, as well as in efficient state finance management, clear budget policy and liquid and deep bond secondary market.
Mosikyan said attempts should be made to include Armenian bond onto the well-known developing country bond indices, like J.P.Morgan Emerging Markets Bond Index Global (“EMBI Global”), and to get rid of “Kardashyan bonds” name.
An emerging markets analyst from Standard Bank Tim Ash called Armenia’s dollar bonds “Kardashyan” after an American actress and photo model of Armenian origin Kim Kardashyan. –0—
On September 19 Armenia issued its first Eurobonds worth $700 million with redemption period of 7 years and yield of 6%. The main underwriters of the issue were Deutsche Bank AG, London Branch, HSBC Bank plc and J.P.Morgan Securities plc. According to the country’s ministry of finance, the demand for the first dollar bonds exceeded $3 billion threshold the first days after the placement.
“There should come other issues for building a complete yield curve at least up to the 10-year period point. There should be relations developed with rating agencies, particularly for obtaining the sovereign rating from Standard & Poor’s we lack at the moment. There should be regular roadshows and meetings with investors arranged during important and key events on the international loan capital market”, Mosikyan said in his interview to ARKA.
Mosikyan said the debut issue has been an important step toward development of the practice and of the state finance management system in general.
“We are facing the Wall Street and City investors now who have purely commercial interests and are less emotional to the issuer”, Mosikyan said. According to him, these investors are interested in at least credit risk (consequently, credit rating) level maintained before the redemption, as well as in efficient state finance management, clear budget policy and liquid and deep bond secondary market.
Mosikyan said attempts should be made to include Armenian bond onto the well-known developing country bond indices, like J.P.Morgan Emerging Markets Bond Index Global (“EMBI Global”), and to get rid of “Kardashyan bonds” name.
An emerging markets analyst from Standard Bank Tim Ash called Armenia’s dollar bonds “Kardashyan” after an American actress and photo model of Armenian origin Kim Kardashyan. –0—
