ADB issues inaugural Armenian dram linked bonds

The Asian Development Bank has raised AMD2.66 billion (about $5.4 million) from a new issue of offshore Armenian dram-linked bonds. The transaction was structured as a five-year fixed rate bond maturing in April 2023.

The transaction represents ADB's first fundraising in Armenian dram. The bonds, which are denominated in Armenian dram but settled in US dollars, were underwritten by HSBC Bank as sole lead manager. The new issue bears a semi-annual coupon of 7.2392%. The bonds were fully placed with investors in Europe.

Proceeds from the bonds will be mobilised to support ADB local currency lending in Armenia.