ARMSWISSBANK GETTING READY FOR SECOND ISSUE OF CORPORATE BONDS OF ‘VALLETTA’ COMPANY
arminfo
2007-11-15 17:53:00
ArmInfo. The second issue of bonds of one of the leading multi-profile
Armenian companies, the "Valletta", will be shortly held.
Today, a contract was signed in ArmSwissBank on formation of a group
for placement of the second issue. The syndicate of underwriters
includes the ArmSwissBank, which comes out the main underwriter
of the issue, as well as the "TonTon", "Renessa", "Armenbrok" and
"Future Capital Market" investment- broker companies. On behalf of the
syndicate, an agreement was also signed between the company-emitter and
the ArmSwissBank on a guaranteed placement of the bonded loan. As the
ArmSwissBank’s press-service told ArmInfo, the volume of the second
issue of non-documentary coupon bonds of the "Valletta" Company
will make up 500 mln drams, divided by 10,000 securities with par
value of 50,000 each. The maturity of bonds makes up 24 months with
the annual rate of 10.5%. The coupon payments will be carried out
every 6 months. The bonds are guaranteed by the "Valletta" Company’s
property and envisage availability of additional guarantees by the
emitter-affiliated company, the "Star Glow" CJSC.
As Executive Director of ArmSwissBank Gevork Machanyan said, the
issues of the bonds of "Valletta" are unprecedented for the Armenian
market because they sufficiently exceed the circulated bonds in the
market not only by the volume and profitability, but also by the
mechanism of their initial placement through formation of a syndicate
of underwriters. By the agreement, the ArmSwissBank undertakes
acquisition of bonds to the sum of 100 mln drams, the "TonTon" –
100 mln drams, the "Renessa" – 100 mln drams, the "Armenbrok" and
"Future Capital market" – 50 mln drams each. The bonds with volume of
100 mln drams will be placed at the open market by underwriting. To
note, the first issue of the "Valletta" bonds to 350 mln drams with
the same parameters and the repayment term of 18 months was carried
out by ArmSwissBank in July, 2007. The securities underwent listing at
the Armenian Exchange ArmEx. "Initially, we targeted at active entry
of bonds in a secondary market, therefore, the ArmSwissBank was given
a license on May 30 for a broker-dealer and depositary activities",
G. Machanyan said.
He also said that in 2007, the bank became the underwriter of the
bonds issue to the total sum of 1.35 bln drams, 850 mln of which are
the bonds of the "Valletta" and 500 mln drams are the volume of debut
debt securities of the ACP mining company. "We succeeded to "form"
the maximum comfortable and attractive tools for investors both by
the level of profitability and liquidity, which we are ready to assure
continuously", G. Machanyan emphasized. According to the business-plan,
the bank intends to increase the issue of debt securities of different
emitters in 2008 to 2 bln drams.
As manager of financial programs of "Valletta" company Anna Gevorkyan
told ArmInfo correspondent, the funds gained from the bonded loans
will be directed to restructuring the sources of finance and reducing
the value of the company’s loan funds, to capital investments in
implementation of new programs and a small part -to the replenishment
of floating assets.
"Restructuring, factually, cheapening of loan funds became one of the
strategically important tasks of our company, which runs a fairly
successful and diversified business, A. Gevorkyan emphasized. The
capital investments are directed to the creation of a net of cafes
of the world- known Italian Segafredo Zanetti company in Armenia. It
will be based on the principles of franchising and floating assets are
necessary to increase import component of the company’s activity and
formation of sufficient supplies of commodities. To note, "Valetta"
company occupies leading places in the list of the largest taxpayers
in Armenia. Within the frames of the company there are a number of
refining productions, fast service facilities, restaurants, networks
of shops, firms importing household appliances.