Electric Networks of Armenia for the first time issues AMD 32 bln bonds
YEREVAN, December 19. /ARKA/. The Electric Networks of Armenia (ENA) cjsc for the first time issued 320,000 bonds worth AMD 32 bln.
The placement is being carried out by Ameriabank. The interest rate is set at 11.4%, the maturity is 3 years, coupon payments are to be made every 6 months.
Speaking at the event dedicated to the issue on Monday, ENA CEO Karen Harutyunyan said that this is the largest ever bond issue in Armenia.
Ameriabank CEO Artak Hanesyan noted that the placement of the bonds in the secondary market will contribute to the development of capital markets in Armenia.
The purpose of the issue is to refinance ENA’s loans, as well as to continue the investment program aimed at reducing electricity losses, expanding the distribution network, reducing operating costs, improving the quality of service, connecting new subscribers to the network and modernizing electricity-metering systems.
The placement is scheduled to be completed on February 9, 2024, and so far 30% of the bonds have already been purchased. The main potential investors are Armenian banks and pension funds, but the process of purchasing the bonds has been simplified for individuals as well: anyone can purchase the bonds through the MyAmeria app.
After listing on the Armenian Securities Exchange, the bonds are expected to enter the secondary market thanks to the diversified investor base and the unprecedentedly large issue volume.
Chairman of the Central Bank Martin Galstyan noted that the entry of such a company as ENA into the market is a vivid example of cooperation between the state and the private sector.
"It is noteworthy that after the Warsaw Stock Exchange acquired the Armenian Securities Exchange, the accessibility of our market for foreign investors has also increased. The Armenian and Warsaw Stock Exchanges are working to bring their standards closer. This will expand opportunities for Armenian companies to attract investments," he said.
The head of the Central Bank expressed hope that ENA's presence in the capital market will not be limited to this and will inspire other companies by its example.
Electric Networks of Armenia CJSC is part of Tashir Group of Companies, which belongs to Russia-based businessman Samvel Karapetyan. It operates medium and low voltage distribution networks in Armenia ($1 - AMD 402.99). -0-
