Ardshinbank successfully priced its debut offering of US$100mln eurobond due 2020

On July 22, 2015, Ardshinbank CJSC successfully priced its Reg S/144A inaugural US$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.

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Established in 2002, Ardshinbank CJSC is one of the leading banks in Armenia. It has a large distribution network with over 56 branches all over the country and a strong Corporate, SME and Retail customer base.