Armenia plans to issue Eurobonds in 2025. What is it?
Armenia plans to issue Eurobonds in 2025, with preparatory work already underway. This information was according to Finance Minister Vahe Hovhannisyan during the annual summary press conference.
Hovhannisyan stated that according to the medium-term debt strategy, Armenia is set to issue Eurobonds in 2025. He happily added that the refinancing risk has been significantly reduced, as part of the Eurobond maturing in 2025 was repurchased last year.
We have substantially eased the burden for next year. Armenia plans to proceed in this direction, and we are carrying out preparatory work. Further details about the timeline will be provided later.
The Armenian government anticipates a 5.5% GDP growth by the end of 2024, with public debt projected to be around 50% of GDP.
A Eurobond is a debt security. It is called so because the buyer of a Eurobond undertakes to repay the borrowed amount along with an interest rate determined by various factors, including the buyer’s risk assessment. Eurobonds are intended for sale in international markets, primarily in European countries.
While Eurobonds are typically issued in euros, they can also be denominated in other currencies. They are often used to raise funds for both short-term and long-term financial needs.
In 2021, Armenia issued approximately $750 million in Eurobonds with a 10-year maturity and a 3.875% yield.