EMBASSY OF THE UNITED STATES
YEREVAN, ARMENIA
Cascade Credit Helps Develop Sound Securities Market with USAID Support

News Release
Cascade Credit
5 H. Kochar Str.Yerevan, 0033, Republic of Armenia,
Phone: + 37410 27.87.76 or 26.55.28, Fax: + 37410 27.82.21, Email:
ccr@cascredit.com
Cascade Credit Universal Credit Organization issued short-term debt
instruments the proceeds of which will be primarily used for on-lending to
quality Armenian producers in need of export finance.
Yerevan, Armenia (September 28, 2006) – Cascade Credit has issued USAID
guaranteed bonds intended to spur development of short-term corporate debt
securities in Armenia and to ultimately help develop a sound securities
market, thereby enhancing financial intermediation in Armenia. The ceremony
set to mark the placement of the initial tranche of Cascade Credit UCO CJSC
debt securities and the conclusion of the Securities Markets Strengthening
Activities Project of the United States Agency for International Development
took place at the trading hall of Armenian Stock Exchange, September 28,
2006.
Cascade Credit is 100% owned by Cascade Capital Holdings, which in turn is
owned by the Cafesjian Family Foundation.
Cascade Credit CJSC, a Non-Banking Financial Institution works to introduce
a range of financial products and concepts that are specifically tailored
for Armenia and aims at becoming a major innovative financial intermediation
player in Armenia with a special focus on identifying market inefficiencies
and eliminating them through profitable strategies.
"This is a significant event for Cascade Credit, which in the last two years
has been devoting considerable efforts to make it happen. The first non-bank
public debt issuance in Armenia is a small, but nevertheless significant
step to sophisticated public debt market in the country."- noted Garegin
Gevorgyan, Cascade Credit CEO.
The USAID credit enhancement is a risk-sharing guarantee covering 50% of the
risk of loss of principal arising from a default on the bonds. Cascade
Capital Holdings CJSC also shares the risk by covering 100% of the risk of
loss of principal arising from a default on the bonds.
"We are proud to support Cascade Credit in this pioneering Armenian capital
market development and hope that many companies will follow suit in raising
capital through bonds. In addition, the secondary trading of these bonds on
ARMEX will bring further transparency to the financial market." – Karoly
Okolicsanyi, USAID, Program Manager.
Cascade Investments is the underwriter for the bonds and will also be
actively engaged in secondary trading.
"It is the first fully registered public offer of securities in the local
market. Cascade Investments will maintain market for these notes to provide
liquidity. We are pretty sure that continuation of Cascade Credit issuance
and gradual involvement of other quality issuers will finally establish
viable capital markets in Armenia." – stated Haik Papian, Cascade
Investments CEO.
Cascade Capital Holdings (CCH) was established by the Cafesjian Family
Foundation in 2004 to create and manage a group of commercial financial
services companies operating to western standards. The main goals of CCH are
to facilitate and support investments into Armenia and the Caucasus, improve
standards of trust, service and innovation across the domestic financial
services sector and introduce a comprehensive, integrated and innovative
product range. Cascade Capital Holdings´ other operating units include
Cascade Bank, Cascade Equity Managers, Cascade Insurance and Cascade
Investments.
CCH receives technical assistance from the United States Agency for
International Development (USAID), as well as support from other US
Government Agencies, including the Development Credit Authority (DCA). CCH
also enjoys a growing relationship with the European Bank for Reconstruction
and Development (EBRD).
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Cascade Credit, 5 H. Kochar Str. Yerevan 0033, Republic of Armenia, phone: +
37410 27.87.76 fax: + 37410 27.82.21, e-mail: ccr@cascredit.com, web: