Republic of Armenia in New $500 Million Eurobond and Simultaneous Tender Offer

March 26, 2015

Cleary Gottlieb represented the Republic of Armenia in a Rule 144A/Regulation S benchmark offering of $500 million 7.150% Notes due 2025 (the “New Notes”) and in a simultaneous cash tender offer in respect of Armenia’s $700 million 6.000% Notes due 2020 (the “Existing Notes”), dubbed by some U.S. bankers as “Kardashian Bonds.” Both the New Notes and the Existing Notes are listed on the Irish Stock Exchange.

The simultaneous tender offer, which commenced on 12 March and settled on 26 March, was capped at a nominal principal amount of $200 million; $199,028,000 principal amount of Existing Notes were ultimately accepted for tender. The proceeds from the offering of New Notes, which also settled on 26 March, were used in part to fund the buyback of the tendered Existing Notes, with the remaining proceeds designated for general government purposes, including funding the fiscal deficit and providing state support for strategic sectors of the Armenian economy such as the agricultural sector. As a result, Armenia succeeded in extending the weighted average maturity of its public debt while preserving the liquidity of the Existing Notes. Cleary Gottlieb also represented the Republic in its debut international offering (of the Existing Notes) in September 2013.