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Armenia To Issue Bonds With 20 Year Maturity For First Time

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  • Armenia To Issue Bonds With 20 Year Maturity For First Time

    ARMENIA TO ISSUE BONDS WITH 20 YEAR MATURITY FOR FIRST TIME

    Noyan Tapan
    Feb 1, 2008

    YEREVAN, FEBRUARY 1, NOYAN TAPAN. On February 7, 2008, the RA ministry
    of finance and economy will issue for the first time milestone coupon
    bonds with maturity of 20 years of the total amount of 80 billion
    drams (about 260.1 million USD). The head of the ministry's state debt
    servicing department Arshaluys Margarian told NT correspondent that
    bonds of the indicated amount will be placed within 3 years. Bonds
    of 25 billion drams will be placed in 2008.

    He explained that bonds whose interest rates are also a milestone for
    formation of market interest rates of other bonds are considered as
    milestone bonds. According to A. Margarian, it is envisaged replacing
    gradually the bonds of other maturity with long-term bonds through
    several big issues.

    Accoridng to the press service of the Central Bank of Armenia, the
    20-year maturity bonds to be issued on February 7 will be sold at
    a discount on the nominal value and will be redeemed by the nominal
    value. The yield of a bond coupon will be fixed at 11% annually and
    be calculated with respect to bonds in circulation. The redemption
    day of bonds is February 7, 2028. Agents chosen by the RA ministry of
    finance and economy may participate in bond auctions. They act either
    on their behalf and at their own expense or on their behalf and at the
    expense of investors. There are no restrictions on potential buyers.
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