RCS - Record PLC - Record invests in EBRD’s Armenian Dram notes

RecordAnnouncement

01/12/2022 08:00

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RNS Number : 1497I  Record PLC  01 December 2022

1 December 2022

Record PLC

Record invests in EBRD's 5 year floating rate offshore Armenian Dram notes

Record PLC (LSE:REC), the parent company of the global currency and asset
manager, announces that its Emerging Market Sustainable Finance Fund was the
sole investor in the latest transaction of local currency bonds issued by The
European Bank for Reconstruction and Development ("EBRD"), in Armenia. The
EBRD has raised Armenian dram (AMD) 2 billion (about USD 5 million) from a new
issue of offshore Armenian dram-denominated bonds, providing funds for the
EBRD's own lending to the Armenian economy in local currency. The transaction
was structured as a 5-year floating rate bond maturing in November 2027 with
listing in London and arranged by HSBC Bank plc.

The EBRD has made cumulative investments in Armenia in excess of EUR 2.1
billion, and the Armenian country strategy emphasises the importance of
developing capital markets and promoting local currency financing. The first
loan in dram was signed in March 2010, and in total the EBRD has extended AMD
150 billion (approximately EUR 384 million) of loans that can or could have
been drawn down in AMD.  The most recent local currency financed project in
Armenia is worth the equivalent of USD 14 million to boost lending to local
private micro, small and medium-sized enterprises in the country.

The semi-annual coupon rate on the EBRD's dram bond issue was linked to a
6-month AMD T-Bill rate, which is one of the reference points in the Armenian
government bond yield curve published by the Central Bank of Armenia on its
website and used by the market participants as a pricing benchmark for their
financial products.

The Record Emerging Market Sustainable Finance Fund is an Article 8 fund
under Regulation (EU) 2019/2088 that aims to support the development of local
currency markets in low and middle-income economies together with improved
access to long-term local currency lending. This unique investment strategy
represents a significant innovation in currency markets and a commitment to
the development of new sustainable investment products for private clients
globally, which Record expects to have broad and growing appeal for years to
come.

Dr Dmitri Tikhonov, CIO of the asset manager said, "We are delighted to
partner with EBRD on this important transaction that will make local currency
credit available to Armenian enterprises. The team at Record, together with
our investors, remain committed to support the development of local currency
markets and promote sustainable currency solutions to end-borrowers in
emerging markets. This transaction is an important step in our ambition to
deliver greater inclusion and long-term sustainable growth in the local
communities and we look forward to engaging with the development community to
see more efforts in this direction."

For further information, please contact:

 

Record
plc
Tel: +44 (0) 1753 852 222

Leslie Hill, Chief Executive Officer

Steve Cullen, Chief Finance Officer

 

Buchanan
Tel: +44 (0) 20 7466 5163

Simon
Compton                                                                     record@buchanan.uk.com

Henry Wilson

George Beale

 

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