Largest Corporate Bond Program at the Securities Market of Armenia Completed Successfully
ՀասարակությունThe debut bond issues of Zangezur Copper Molybdenum Combine CJSC (ZCMC), the largest mining company in Armenia, for the total amount of USD 50 million and AMD 2.5 billion have been fully redeemed on September 30, 2022, marking successful completion of the largest corporate bond transaction ever executed in Armenia. Ameriabank acted as the underwriter and market-maker of ZCMC’s bonds, thus once again putting into action its policy of supporting the economy of RA and the securities market, in particular.
“The ZCMC’s bond program was an unprecedented initiative for the capital market of Armenia in terms of the offering size and investor participation. This transaction has proved that our bond market is capable of meeting the funding needs of Armenian companies, which is also proved by historical corporate bond placements arranged in Armenia by Ameriabank. We are confident that ZCMC’s successful bond program will become a benchmark for local companies in terms of raising funds from alternative finance sources”, - stated Gagik Sahakyan, Corporate and Investment Banking Director of Ameriabank.
3 years ago Ameriabank arranged ZCMC’s bond placement via public offering. The volume of the transaction was nearly five times the volume of the largest corporate bonds previously placed at the securities market of Armenia. The offering saw strong demand from both local and international investors. The investor book was anchored by prestigious international institutions such as the European Bank for Reconstruction and Development, the Black Sea Trade and Development Bank, the Eurasian Development Bank..
Interest from the local market was not limited to institutional investors (fund managers, banks), many individuals got the opportunity to invest their savings in high-yield financial instrument.
After primary placement, ZCMC’s bonds were listed and admitted to trading at Armenia Securities Exchange (AMX), where Ameriabank became the market-maker for the bonds, thus ensuring liquidity at the secondary market.
About Ameriabank
Ameriabank is the largest financial institution and a major contributor to the Armenian economy, with assets exceeding AMD 1 trillion. Being a dynamically developing universal bank, Ameriabank provides a large package of innovative banking services through its omni-channel distribution platform and with clear focus on digital products.
The Bank has adopted a customer-focused approach to ensure service quality and modern banking experience in an evolving digital environment.
Ameriabank is committed to doing business responsibly and advancing Armenia’s transition towards a sustainable future.