CJSC ARMRUSGASPROM BONDS TRADING AT ARMENIAN EXCHANGE EXCEEDS $736,000
arminfo
2008-01-10 15:59:00
ArmInfo. Trading of CJSC ArmRusgasprom bonds that were listed at
Armenian Exchange (ArmEx) in September 2007 exceeded 221 million drams
(about $736,000), the company reports.
The source reports that CJSC ArmRosgaprom bonds were leaders for
the last 4 months by the trade volume. This positive tendency was a
result of dynamic growth of the financial and economic figures and
high rating of the company.
The company is known to enter securities market for the first time
in 2007 by placing 1 million drams nominal coupon bonds issued in
June-July.
Investors took a great interest in the issue of bonds and now
demand exceeds supply. Not only commercial banks but also other
organizations and individuals acquired the company’s bonds. It means
that ArmRusgasprom’s bonds are considered a reliable and high-liquidity
financial instrument, specialists say.
In 2008 the company intends to remain actively engaged in the market
of corporate bonds and issue bonds not only in Armenia but also in
Russia. The company’s policy allows attracting additional funds
for implementation of various investment projects and boosting
securities market of Armenia, which is not less important, the
company’s specialists say.
To recall, CJSC ArmRusgasprom completed the initial offer of its
coupon bonds worth 1 billion drams consisting of 100,000 bonds worth
10,000 AMD each on July 4 2007. Maturity of bonds is 10 months. The
annual interest rate is 9 percent. CJSC Cascade Investments is
the underwriter which is represented in the secondary securities
market as market-maker for ArmRusgasprom’s securities. The company
reports that both commercial banks and any institutional investors,
other participants in the market, enterprises from different sectors
of economy and individuals responded to the issue of bonds. The CJSC
ArmRusgasprom Board of Directors approved the first issue bonds on May
20 2007. Recently, it has approved the second issue of bonds worth 5
billion drams. The company may start IPO in the domestic market and
abroad in future.
CJSC ArmRusgasprom was founded in December 1997 and is an exclusive
importer of natural gas to Armenia. Due to the additional issue of
$111.8 million bonds by the CJSC ArmRusgasprom, its authorized capital
grew from the previous $280 million to $391.8 million. OJSC Gazprom
increased its share in the authorized capital of CJSC ArmRusgaspron
from the previous 45% to 57.59%. The share of the Armenian Government
decreased from 45% to 34.7% and that of ITERA decreased from 10%
to 7.71%. The company planned an additional issue of bonds for $190
million in 2007. Relevant information will be made public after the
company’s financial report for 2007.