On 18 December, the solemn ceremony of issuing the bonds of the “Electric Networks of Armenia” CJSC company took place.
The Company issued bonds for the first time in the Armenian capital market in the amount of 32 billion drams, with an interest rate of 11.4%, a maturity of 3 years and with semi-annual coupon payments. Ameriabank is the underwriter of the bonds.
The purpose of issuing bonds is to refinance the Company’s loans, as well as to ensure the continuity of the investment program aimed at reducing electricity losses, expanding the distribution network, reducing operating costs, increasing the quality of service, connecting new customers to the network, and modernizing electricity metering systems.
The main potential investors of the bonds are Armenian banks and pension funds, however, the process of purchasing bonds is maximally simplified for individual investors; anyone can buy ENA bonds completely online and automatically using the MyInvest platform and the MyAmeria application.
Once listed on the Armenian Securities Exchange, the bonds are expected to have an active and deep secondary market thanks to an already established diversified investor base, unprecedented bond volume and professional market makers.
“I believe, the placement of own bonds in the financial market of Armenia, will contribute to the development of the financial market, promote closer interaction of its key participants”, – Mr. Karen Harutyunyan, CEO of “Electric Networks of Armenia” Company noted, – “The guarantees for the financial stability of the ENA are stable, established and transparent regulatory environment, long-term mechanisms for compensation of costs and investments, predictable and calculable cash flows, lack of risk caused by changes in electricity volumes”.
“It is a great honor for Ameriabank to play a key role in the process of issuing and placing bonds of the “Electric Networks of Armenia”. This is a historic event for the Armenian capital market, as it is the largest placement of bonds ever realized with a total volume of 32 billion drams. It is also significant that the issuance is carried out in Armenian drams, contributing to the confidence in the national currency and increasing the investment attractiveness of the country,” Mr. Artak Hanesyan, CEO General Director of “Ameriabank” CJSC said.
It should be noted that the prospectus for the issuance of bonds of “ENA” CJSC was registered by the Central Bank of Armenia.
About “ENA” CJSC
The “Electric Networks of Armenia” CJSC is engaged in the distribution and supply of electricity in the territory of the Republic of Armenia. It uses its own 0.4-110 kV overhead and cable power transmission lines, substations and distribution points for power transmission. The Company has over 1 million subscribers. It is the largest employer in Armenia.
ENA is included in the “Tashir” Group of Companies.
About Ameriabank
Ameriabank is a leading financial and technological institution, one of the significant actors of the RA economic sphere, whose assets exceed AMD 1 trillion. Following the path of digitization, the Bank has implemented a number of innovative programs and platforms and continues to improve them, forming a dynamically developing financial-technological environment aimed at satisfying various human needs.
Being customer-oriented, Ameria strives to provide a high quality of service by offering complete solutions to improve the quality of life in a trusted and secure financial technology environment.
Ameriabank is controlled by the RA Central Bank.
