SHEN CONCERN STARTS ISSUEING OF SECOND TRANSFER OF ITS BONDED DEBT

Arminfo
2007-04-10 13:30:00

The Armenian "Shen Concern" CJSC, being the leader in the production
of building materials in Armenia, starts issueing of the second
transfer of its nominal, non-documentary, discount bonds. As ArmInfo
was told in the "Ecapital Asset Management" Investment Company, being
the underwriter and market-maker of bonds, the volume of the second
transfer will make up 40 mln drams. Four thousand bonds of 10,000
drams at par will be issued. The earnings yield of the Concern’s new
issue will remain at the previous level, that is, 9% of annual.

The bonds’ circulation term is 365 days since the last flotation. The
total par value of the whole bonded debt makes up 160 mln drams to be
floated till June 1 by four equal transfers. The gain from securities’
sale will be directed to refinancing of the Company’s debt . The
first transfer of bonds was issued at the end of December, 2006, and
successfully floated in full volume. The buyers were the "Armswissbank"
and "Ecapital Asset Management". On February 27, the Central Bank of
Armenia carried out REPO-operations with the Concern’s securities.

This is the first case of REPO-contracts of RA CB with non-government
securities. To recall, the European Bank for Reconstruction and
Development became the owner of 24% of shares of the "Shen-Concern"
at the end, 2004, for 850,000 Euro. In July, 2006, the EBRD bought 12%
of the Concern’s shares in addition. These are the first investments of
the European Bank in the private industrial enterprise of Armenia. The
rest of shares belong to the Company’s top-managers. To note, the RA
Central Bank conferred a high rating "B" to the "Shen Concern" CJSC.