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EBRD to Issue 5 Billion Dram Floating Rate Bonds in Armenia

News | 2026/07/03 23:02

EBRD to Issue 5 Billion Dram Floating Rate Bonds in Armenia

New Investment Initiative by EBRD in Armenia

The European Bank for Reconstruction and Development (EBRD) is set to issue floating rate bonds worth 5 billion drams on the Armenian capital market. This is the EBRD's latest investment initiative aimed at developing financial instruments in local currency, expanding financing opportunities, and deepening Armenia's financial market. The distribution is scheduled for July 7, 2026, on the Armenian Stock Exchange (AMX) through an auction.

The placement will be carried out by Converse Bank, a leading player in Armenia's capital market, which has conducted several corporate bond placements in recent years. The issuance of EBRD's dram bonds is another significant project for the Bank, highlighting its expertise and specialization in organizing capital market transactions and investment solutions.

The maturity period of these bonds is 36 months, with a floating coupon tied to the yield of Armenia's 6-month government bonds, which will be reviewed every six months to ensure market-appropriate returns and allow investors to benefit from changes in the interest rate environment.

The issuance of dram bonds by the EBRD is of great importance for Armenia's financial system. Such instruments promote the development of the local currency capital market, the formation of long-term financing sources, and the expansion of the participation of international financial institutions in the local market. At the same time, they offer investors a high-rated issuer's security with market-appropriate returns.

After the distribution is completed, the bonds are expected to be listed on AMX, and necessary processes will be initiated to ensure their use in repo transactions by the Central Bank of Armenia. This could significantly enhance the liquidity and investment attractiveness of the bonds in the secondary market.

Participation in the auction is possible through investment service providers that are members of the Armenian Stock Exchange.

For more information:

Converse Bank is regulated by the Central Bank of Armenia.

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