‘Shen Concern’ CJSC successfully fulfills obligations of first tranche
of its corporate bonds

2007-12-27 17:33:00

ArmInfo. "Shen Concern" CJSC, which leads in the Armenian market of
construction material production, declared about successful fulfillment
of obligations of the first tranche of its corporate bonds worth a
total of 40 mln AMD. As ArmInfo was told at the "Capital Asset
Management" company, which is the underwriter and market maker of the
group’s documents, the successful redemption of bonded loans is
evidence of high level of the company’s soundness and financial
stability, which was a pioneer in placement of corporate bonds into an
open corporate bonds market in December 2006. The annual profitability
of the first tranche documents was fixed at 9% per annum. According to
preliminary estimations, sales revenue of the first tranche made up 36
697 248 AMD, which was directed to the company’s dept refunding.

At present three more tranches of "Shen Concern’s" bonds worth a total
of 120 mln AMD, 40 mln-each, are in circulation in the open market,
which are priced at the Armenian Exchange (ArmEx). It was with the dept
securities of "Shen Concern", namely, that the Central Bank of Armenia
made the first Repo- operations with non-state securities on February
27, 2007.

Presently, "Shen Concern" CJSC deals with production of construction
materials, paints, coating, binding materials, blocks of concrete, as
well as is engaged in construction and trade of construction materials,
setting up new productions and extending the manufacturing space.

To recall, at the end of 2004 the European Bank for Reconstruction and
Development (EBRD) bought 24 % of the shares of "Shen Concern" for 850
thsd EUR. The latter bought 12% more of the enterprise’s shares. These
are the first investments of the European bank in a private industrial
enterprise in Armenia. The rest of the shares belong to the
top-managers of the enterprise. To note, the Central Bank of Armenia,
which has started rating various non-commercial enterprises of the
country since 2006, highly rated "Shen Concern" CJSC among "B".