Conversebank Issues 1.5bln AMD Bonds

CONVERSEBANK ISSUES 1.5BLN AMD BONDS

ARKA
Dec 11, 2008

YEREVAN, December 11. /ARKA/. Conversebank (Armenia) is issuing nominal
medium-term coupon bonds to the amount of 1.5bln AMD, Ararat Ghukasyan,
CEO, stated at the presentation of the bonds today.

He pointed out that the bank issued 50,000 bonds, the nominal value
of one bond being 30,000 AMD and bond turnover three years. The annual
yield is 10.64%, with quarterly coupon payments to be effected.

"The bonds will be placed in five tranches, with the first, 300mln AMD,
to be placed December 16 2008 through January 14 2009," Ghukasyan said.

He pointed out that this year has been successful for the bank.

Specifically, the bank has implemented all the planned programs,
particularly enlarged investments in the country’s economy, attracted
new clients and consolidated its market positions.

Ghukasyan said that the bank had to consolidate its achievements by
presenting a new instrument, namely, new long-term bonds.

"It is for the first time that the placement of bonds in Armenia
means a program offer for such a long period, three years, which is
attractive to prospective investors as allowing them to make long-term
investments," Ghukasyan said.

According to him, a program issue by means of five tranches will
ensure the circulation of bonds on the secondary market. The Capital
Asset Management Company is underwriter of the issue.

Tigran Karapetyan, Dir ector of Capital Asset Management, pointed
out that the bonds will be listed on exchange for their circulation
on the secondary market to be ensured.

"As underwriter we are ready to ensure the circulation on the secondary
market and plan daily listing of the bonds and guaranteed purchase
and sale," Karapetyan said.

The Conversebank CJSC was incorporated on December 20, 1993. Eduardo
Eurnekian, an Argentina-based Armenian businessman, became holder
of 95% of Conversebank shares, with the rest 5% being held by the
Armenian Apostolic Church. As of October 31, the bank’s total capital
reached 13bln AMD, assets 63.9bln AMD and liabilities 50.9bln AMD.

According to the information at ARKA’s disposal, at the end of the
3rd quarter of 2008 Conversebank registered the sixth largest assets,
customer crediting volume, liabilities and total capital, as well as
the 3rd largest amount of deposits attracted from individuals and
legal entities. The bank also registered the 5th largest profits
this January-September.

Conversebank is currently rendering services by means of the following
international payment systems: Migom, Contact, Blizko, InterExpress,
Leader, Allure and Gold Crown.

The bank has 25 branches, with eight of them in Yerevan.