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 Capital Markets of Armenia and Azerbaijan during the 2 weeks of Artsakh War in 2020

Capital Markets of Armenia and Azerbaijan during the 2 weeks of Artsakh War in 2020

On September 27 Azerbaijan started a war against Artsakh Republic, which enhanced the risk in some macroeconomic changes and possible impact on the capital markets stability. On September 29 Cbonds.ru reported of the dynamics of Armenian and Azerbaijani bonds.  Fluctuations appealed to two countries’ bonds but as of October 9th Armenian bonds remain stable, while Azerbaijani Eurobonds continue to grow.

See the tables as of Sep 24-Oct. 9

10-year Eurobonds

Armenian Eurobonds

ISIN: XS1207654853

Azerbaijani Eurobonds

ISIN: XS1044540547

 

Armenia made the third issue of Eurobonds (XS2010043904) in fall, 2019 totaling $500M with a coupon rate of 3.95% which is lower than the rates of the previous two issues. On September 27 these bonds performed a drastic downward movement but since October 5th has come to a stable point.  

Azerbaijan also made an issue of Eurobonds maturing in 2029, totaling around $310.7 M with a coupon rate of 5.13%. On September 27 these bonds moved downwards but since October 5th have continued to grow. 

9-year Eurobonds maturing in 2029

Armenian Eurobonds

ISIN: XS2010043904

Azerbaijani Eurobonds
ISIN: XS1678623064

Fitch Ratings

On Monday Global credit rating agency Fitch downgraded Armenia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to “B+” from “BB-” amid fears of a second wave of the coronavirus across the world and ongoing confrontations of armies in Nagorno Karabakh. The outlook is stable.

Azerbaijan’s new Fitch rating is BB+ with negative outlook as of July, 2020.

Armenia Securities Exchange as the best Exchange in South Caucasus in 2020

Last month Armenia Securities Exchange was awarded “Best Securities Exchange South Caucasus 2020” by Global Banking & Finance Review, a leading Online and Print Magazine.
Global Banking & Finance Review awards are held annually, granting most prominent companies in the field of banking and finance worldwide.

Fortnight Trading at AMX

In the previous two weeks trading at securities exchange platforms was active, performing a steady growth both in number of trades and volumes. This fortnight (Sep. 28-Oct5) value of government bonds traded at AMX grew by 155 % (over twice) with doubled number of trades in comparison with trading period between Sep 14-Sep28.  The secondary corporate bond market within two weeks of Artsakh War also remained active, demonstrating 84% surge in volume of trades and 96% increase in number of trades, respectively.

Weekly updates of trades on Armenia Securities Exchange platforms are reported on Telegram channel.

Armenian capital market remains stable and continues to work uninterruptedly, being an important guarantee for the stability and normal development of the Armenian financial markets.

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