A new program aimed at supporting Armenia's capital market was officially launched in Yerevan. The initiative, implemented by the European Bank for Reconstruction and Development (EBRD), is funded by the European Union and supported by Armenia’s Ministry of Economy. Advisory services for the program will be provided by Galt & Taggart and Ameria.
According to Armenia’s Ministry of Economy, the program is designed to facilitate Armenian companies' access to capital markets by issuing bonds and shares. During the launch ceremony, Deputy Minister of Economy Sevak Mikaelyan highlighted that the project will raise awareness among companies about the opportunities offered by capital markets while reducing their costs of attracting financing.
Initially, companies that have undergone external audits, particularly those working with international auditing firms, will be eligible to participate. To encourage the issuance of dram-denominated securities, the government has introduced a subsidy system. Companies can receive compensation for up to 80% of listing and bond issuance costs, capped at 30 million drams (over 76 thousand dollars).
Additionally, the government is prepared to subsidize up to 3% of the nominal value of bond issuances during the first three years of circulation, with an annual limit of 45 million drams (over 114 thousand dollars). Companies may also have 50% of their expenses for obtaining an international credit rating covered in the first year, and up to 80% of those costs if listing on the Armenian Stock Exchange.
The program builds on the government’s ongoing efforts to develop the capital market, initiated last summer with measures to promote the issuance of dram-denominated securities.
