Category: Gbond auctions

OVER 40 BILLION AMD RAISED FROM A GBOND AUCTION ON ARMENIA SECURITIES EXCHANGE

12.07.2019

Over 40 billion AMD (83857442 USD) was raised for the State Treasury of Armenia from the auction of government bonds on AMX - Armenia Securities Exchange last week, which has become the largest auction of G-secs in Armenia since 2017.

At the primary allocation, 10-year Gbonds (ISIN AMGB1029A292) worth a total of 40 billion AMD were offered and sold. Interestingly, the total amount of bids (demand) exceeded 99 billion drams. The weighted average yield of the allocation was 9․67%.

Another 7.93 billion was raised in an auxiliary auction on July 10. The auctions were processed through a number of channels including gp.minfin.am, an online platform for government bonds trading. A total of 896 million drams was raised via this platform.

Armenia Securities Exchange and Armenia’s Ministry of Finance have developed gp.minfin.am to give individuals an opportunity to buy and sell Gbonds online. The demand exceeded the supply nearly twice. This year the number of transactions on gp.minfin.am has grown by 31%, while the trade volume shows an rise of 9.5% as compared to the 2018 January-May trade results. This means there is an increased interest towards investing in Gbonds.

The Gbond trading is conducted through the State Treasury, which allows individuals to buy and sell securities without a broker. Taking advantage of the completely automated system, retail investors make necessary payments online. Meanwhile, the registration and transactions are free, and the investor is charged only for the money transfer. 

To register on GPminfin platform, retail investors can either sign up online with their ID cards (GPminfin) or by visiting any of 5 bank branches located in Yerevan.

Updated as of: 17.07.2019