770MLN AMD TRANSACTIONS EFFECTED WITH FIRST BOND TRANCHE OF VALLETTA LTD IN ARMENIA’S SECONDARY MARKET
ARKA
Feb 6, 2009
YEREVAN, February 6. /ARKA/. Transactions to the amount of 770mln AMD
were effected with the first tranche of nominal coupon nondocumentary
bonds of the Valletta Ltd on the Armenian secondary market – over two
time as much as the amount of issue, said Karen Turyan, Director of
the Investment Department, ArmSwissbank CJSC.
A decision on the 350mln AMD issue of nominal coupon bonds (with a
nominal value of each bond being 50,000 AMD) was made on June 19,
2007. The bond turnover was 18 months, annual bond yield 10.5%
(semiannual coupon yield 5.15%). The bonds were placed on the
Armenian Stock Exchange (ARMEX) July 31 through August 13, 2007,
and were listed on the Bbond exchange on September 25, 2007.
Ten ex-pit transactions to the amount of 80.5mln AMD were effected
before listing, the annual average market yield being 10.2%, Turyan
told reporters at the international press center Novosti.
He pointed out that REPO transactions to the amount of 282.6mln AMD
were effected with bonds – 80% of the amount of issue.
"We offer our clients, individuals and legal entities, short-term
bonds, which is quite convenient for managing and ensuring sound
liquidity," Turyan said. He pointed out that all the payments were
effected on time.
Armen Berberyan, Financial Director of the Valletta=2 0Ltd, said
that all the bonds were successfully redeemed, and coupon payments
ensured a yield of 10.5% to clients and 20-25 per cent to the most
active investors.
The Valletta Company fulfills its commitments to all of its lenders,
Berberyan said.
As of January 31, 2009, ninety-one transactions to the amount
of 448.7mln AMD were effected on ARMEX – 128.2% of the amount of
issue. The average cost of one exchange transaction was 10.51%.
The Valletta Ltd launched its activities in Armenia in 1990. The
company specializes in trade (export, import, retail and wholesale),
fast food (SFC), tea and coffee production, as well as in the
development of enterprises that start operating as independent
enterprises later. The company comprises processing enterprises,
restaurants, store chains, firms importing household appliances.
Early in December 2007 the Valletta Company floated a second issue
of nominal coupon nondocumentary bonds, and last September a third
issue of partly paid bonds. The amount of both issues reached 1bln AMD.
The ArmSwissbank CJSC acted as underwriter for the issues of the
Valletta Ltd’s securities.