ARARATBANK ENTERS MARKET WITH NON-DOCUMENTARY COUPON BONDS
Arminfo News Agency
2007-05-08 13:12:00
One of the dynamically developed banks of Armenia, the ARARATBANK,
started flotation of the bond issue. As the Bank told ArmInfo,
the volume of emission of non-documentary coupon bonds made up 250
mln drams divided by 25,000 bonds of 10,000 drams at par. The term
of bonds circulation makes up 12 months with an interest rate of
8% annual, that exceeds the exchequer curve by 2% on average. The
coupon payments will be carried out by the quarter per the following
schedule: August 13, 2007, November 12, 2007, March 11, 2008 and
May 12, 2008. The Bank will make quarterly coupon payments with 2%
of annual, in view of which the efficient interest rate will make up
about 8.24%. The "Cascade Investments" Investment Company has become
the underwriter of the issue. The register of the bonds holder will
be kept by the Central Depositary of Armenia.
As Executive Director, Chairman of the ARARATBANK’s Board of
Directors Ashot Osipyan said, the emission of bonds is connected
with the Bank’s reputation formation as a good issuer in view of
the long-term strategic plans aimed at the further entry of the Bank
shares in the market and its reorganization to an Open Joint Stock
Company. According to Executive Director of the "Cascade Investments"
Haik Papyan, the process of bonds flotation will be completed on May
10 to be followed by their registration and listing in the Armenian
Stock Exchange ArmEx. H. Papyan said that the issue uniqueness is
not only in its volume but in the extra activity of physical persons
who apply for the purchase of bonds. As of March 31, 2007, the total
capital of ARARTBANK made up $10.8 mln, the size of assets – $33.3
mln. the total credit investments – $9.8 mln. The Bank is active in
the market of state debentures, the securities investments made up $8.7
mln. The net profit of the Bank upon results of 2006, made up $2.5 mln.
To note, the issue of the bank bonds prior to the ARARATBANK was
carried out by Armeconombank at the end, 2005. The bonds of the
Universal Credit Organization "Cascade Credit" of the "Shen Concern"
manufacturing enterprise entered the market in 2006.