The operator of Armenia's electric networks has announced a new issuance of high-yield bonds, offering investors attractive placement terms until January 24. The company is issuing securities with a total value of $20 million in U.S. dollars and 7.7 billion drams (equivalent to $19.4 million), featuring an annual yield of 7.45% for dollar-denominated bonds and 10.75% for dram-denominated ones.
The nominal value of a dram-denominated bond is 100,000 drams (approximately $252), while the nominal value of a dollar-denominated bond is $100. The bonds have a maturity period of six years with quarterly coupon payments, making them an appealing instrument for long-term investments.
The issuance is bolstered by a high credit rating of Ba2 with a stable outlook from Moody's, which is one notch higher than Armenia's sovereign rating. An important advantage for investors is the exemption of bond income from income tax.
The company has simplified the bond acquisition process to the maximum: investors can purchase the bonds entirely online via the MyInvest platform within Ameriabank's MyAmeria app, in person at bank branches, or by submitting a completed application via email. The bonds will also be traded on the secondary market through the Armenian Stock Exchange.
The bond issuance prospectus was registered under Decision No. 1/422A of the Chairman of the Central Bank of Armenia on November 6, 2024. The funds raised are planned to finance the company’s investment and other projects, highlighting the strategic importance of this issuance for the development of the country's energy infrastructure.
