Average yield on Armenian Eurobonds in August increased by 0.41%
08.10.2015,
18:48
The average yield on Armenian Eurobonds in August increased by 0.41 percentage points, reaching 6.84%, the Central Bank said in its monthly bulletin for August.
YEREVAN, October 8. / ARKA /. The average yield on Armenian Eurobonds in August increased by 0.41 percentage points, reaching 6.84%, the Central Bank said in its monthly bulletin for August.It said a total of $9.94 million worth transactions with Eurobonds were made in August, up from $1.5 million in July.
The yield on Eurobonds rose by 0.12 percentage points in June to 6.21%, in July it rose further to 6.43% and in August it reached 6.84%.
According to analysts, the increase in the yield on Armenian Eurobonds is explained by unstable geopolitical situation in the region and a serious strengthening of the US dollar against almost all currencies of the world, which could not fail to reflect also on the Armenian financial market, impacting the interest rates.
The global financial markets in August saw high nervousness; in particular, the volatility of the markets was affected by the devaluation of the Yuan, the Black Monday on August 21 (collapse in prices in the US market) and the achievement of a final agreement with creditors of Greece.
According to the Central Bank, in January-August this year a total of $92.1 million worth transactions were made with Eurobonds in the secondary market with an average yield of 6.46%.
Armenia first issued $700 million worth dollar-denominated bonds in September 2013 at the yield of 6.25 percent. The bulk was used to repay a $500 million Russian loan ten years ahead of schedule.
Armenia sold a second issue of $500 million 10-year dollar bond on March 19, 2014 paying a yield of 7.5%.
Deutsche Bank, HSBC Bank and JP Morgan acted as underwriters. Of that amount, about $205.8 million was spent to buy back part of the previous dollar bond issue carried out in 2013.-0-
The yield on Eurobonds rose by 0.12 percentage points in June to 6.21%, in July it rose further to 6.43% and in August it reached 6.84%.
According to analysts, the increase in the yield on Armenian Eurobonds is explained by unstable geopolitical situation in the region and a serious strengthening of the US dollar against almost all currencies of the world, which could not fail to reflect also on the Armenian financial market, impacting the interest rates.
The global financial markets in August saw high nervousness; in particular, the volatility of the markets was affected by the devaluation of the Yuan, the Black Monday on August 21 (collapse in prices in the US market) and the achievement of a final agreement with creditors of Greece.
According to the Central Bank, in January-August this year a total of $92.1 million worth transactions were made with Eurobonds in the secondary market with an average yield of 6.46%.
Armenia first issued $700 million worth dollar-denominated bonds in September 2013 at the yield of 6.25 percent. The bulk was used to repay a $500 million Russian loan ten years ahead of schedule.
Armenia sold a second issue of $500 million 10-year dollar bond on March 19, 2014 paying a yield of 7.5%.
Deutsche Bank, HSBC Bank and JP Morgan acted as underwriters. Of that amount, about $205.8 million was spent to buy back part of the previous dollar bond issue carried out in 2013.-0-
