Financed ProjectsZangezur Bond, Armenia

Identification Code:

OP/19/0053

Total Operation Cost:

55.000.000

Maturity:

36 months

Operation Status:

Description and Purpose of the Operation:

Acquisition of Bonds issued by Zangezur Copper Molybdenum Combine CJSC, Armenia.

Countries of Operation:

Armenia (100,00 %)

Financial Product:

Loans

Sector:

Materials

Domain:

Private

Borrower/Client:

Zangezur Copper Molybdenum Combine CJSC, Armenia

Co-Financiers/Participants:

N/A

Guarantors/Sponsors:

N/A

Developmental and Regional Cooperation Impact:

The Bond is the first corporate bond issue of this Armenian entity and one of the few corporate bonds issued by Armenian entities. It would be an important transaction as the BSTDB participation would assist in diversifying the funding sources of the client. The issue will be listed on the local stock exchange with av iew of increasing the liquidity of the market. Issuance of this corporate bond might open the door to international capital markets for this particular client which is one of the main corporates of the country.

Environmental Classification and Impact (summary):

Category B+. The E&S due diligence concludes that Zangezur OJSC is well aware of the E&S implications of its activities and the risks these generates. The Company has instituted the necessary management systems in line with IFC's E&S Performance Standards and has incorporated best international environmental management practices to effectively control such risks. Its activities are legally compliant with environmental, labor, and health and safety legal and regulatory framework and the risk of its activities being reduced, suspended or closed down due to non- compliance are assessed as minimal.

Operation Leader:

General Industries, Transport, Tourism 1

E-mail:

gitt1@bstdb.org