ARMENIAN STOCK EXCHANGE STARTED TENDER BY FIRST CORPORATE BONDS OF NON-FINANCIAL SECTOR – ‘SHEN-CONCERN’ CJSC
arminfo
2007-02-27 08:16:00
Tender by first corporate bonds of a non-financial sector, a leader
for production of building materials, "Shen-Concern" CJSC, has
started today on the floor of the Armenian Stock Exchange (ArmEx),
Aleksan Sahakyan, Director General of "E-capital Asset Management",
which is an underwriter and a market-maker of bonds, told ArmInfo.
Along with it, according to the Head of Exchange, Armen Melikyan, the
bonds had successfully passed an exchange listing in category "B" in
a specially created scale for the bonds. He emphasized the importance
of availability of a market-maker in the person of "E-capital Asset
Management" that will assure permanent bilateral quotations of bonds
and their full liquidity.
To remind, the "Shen-Concern" CJSC has issued nominal, non-documentary
discount bonds in December. The total par value of bonds will
make up 160 mln drams to be placed by four equal transfers of 40
mln drams each till June 1. Each transfer envisaged to issue 4,000
bonds at face-value of 10, 000 drams per bond. The annual earnings
yield of securities is fixed at a level of 9% per year. According to
the preliminary estimation, the gain from realization of the first
transfer will make up 36 697 248 drams to be aimed at refinancing of
the Company’s debt. The term of bonds circulation is 365 days since
the last placement day.
The "Shen-Concern" CJSC is presently engaged in the production of
building materials, paints, putty, binding materials, concrete
blocks. It also deals with construction and trade of building
materials. In future, the Company schedules to continue the production
of pints and dry mixtures, as well as to organize new kinds of
production.
As of September 30, 2006, the Company’s gain from realization made
up 1 462 058 thsd drams, in 2005 – 1 243 292 thsd drams against 1
073 103 thsd drams in 2004. The net profit as of Sep 30, 2006, made
up 272 321 thsd drams against 36 139 thsd drams in 2005 and 201 926
thsd drams in 2004. According to the Company’s specialists, if the
production realization volumes within 9 months, 2006 grew by 17,6%,
the net profit for the same period has increased by 653,5%. Such
high rates of profit growth are explained by the reduction of the
production first cost.
To remind, the owner of 36% of shares of "Shen-Concern" CJSC is the
European Bank for Reconstruction and Development (EBRD). These are
the first investments of the European Bank in the private industrial
enterprise of Armenia. The rest part of shares belongs to the
Company’s top-managers. To note, the Central Bank of Armenia has
conferred a high "B" rating on "Shen-Concern" CJSC. The estimation
of the Company’s financial activity by CB specialists made up 3.86,
the estimation of activities quality – 4.5, the average estimation –
4.18. In view of this, the CB is ready to accept the bonds, issued
by the Company, as a guarantee during signing of REPO-Contracts
with commercial banks. In the opinion of analysts, this circumstance
contributes greatly to the bonds liquidity level increase and enables
the investors to enter the market of alternative financial tools.