On 12 February 2014 NASDAQ OMX Armenia listed the first Armenian Dram (“AMD”) denominated bonds of European Bank for Reconstructions and Development (“EBRD”) on the main Abond list.  

This issue of total 2 bln AMD floating rate coupon bonds, with nominal value of AMD 10,000 and maturity of one year will be the first floating rate bonds in Armenian market. The issue will be traded under EBRDB1 ticker symbol and will be allowed to manual and REPO trading as well.

“EBRD plays key role in investment projects in Armenia, and having their bonds listed on Abond list of NASDAQ OMX Armenia is important step towards introduction of new instruments and further development of Armenian capital market”, noted Konstantin Saroyan, CEO, NASDAQ OMX Armenia.

“The EBRD local currency bonds are helping to stimulate and encourage development of Armenia’s capital market, and through EBRD on-lending in Dram, will reduce  foreign exchange exposure for local entrepreneurs”, said Mark Davis, Head of the EBRD Yerevan office.

To recall, earlier this year on January 31, 2014 EBRD placed its AMD denominated bonds via an auction at NASDAQ OMX Armenia.  The floating rate notes for a total amount of AMD 2 billion were placed successfully through the stock exchange mechanism. The coupon rate was referenced to 6-month AMD T-Bill rate published by the Central Bank of Armenia with a margin of 0.30% per cen per annum. Cut-off rate was set during the auction at 8.555%.

This was the first public placement of bonds in Armenia by an international financial institution, completed through the stock exchange mechanism, which widens the customer base of NASDAQ OMX Armenia by using its technologies in the securities placement process and creates grounds for enhancement of investment opportunities in Armenian capital market.