YEREVAN. – On July 22 Ardshinbank CJSC successfully priced its Reg S/144A inaugural U. S. $100mm 5-year eurobond, Ba3 rated by Moody’s and B+ by Fitch, establishing the first corporate eurobond issuance from the Republic of Armenia. The eurobonds are listed on the Irish Stock Exchange and clear through Euroclear and Clearstream.
The new longer dated 5-year funding provides Ardshinbank with an important competitive advantage as it will allow the bank to offer longer-dated loan products in Armenia and take advantage of local growth opportunities.
The transaction was executed in parallel with a consent solicitation, which aligned the terms and conditions of an existing US$75mm private placement note due 2017 with those of the new bond, achieving a 100% vote acceptance from investors. In addition, Ardshinbank also coordinated an any-and-all cash tender of the private placement note with its debut eurobond transaction, offering investors to liquidate their positions at par and/or to roll their existing holdings into the new deal. The high 80% tender participation rate and rollover ratio underlined investors’ confidence in Ardshinbank’s credit story.
The bank conducted a carefully crafted marketing campaign, attracting interest from over 35 institutional investors during a 5-day roadshow exercise in London, Zurich, New York and Boston. The debut offering has been conducted with the help of J.P. Morgan Securities plc., which acted as the sole-lead manager for the transaction.