Head of ‘Valletta’ LLC considers the fact of successful repayment of
first tranche of corporate bonds unprecedented

2009-02-06 18:36:00

ArmInfo. The redemption of `Valletta’ LLC’s first-issue bonds worth a
total of 350 mln AMD has become an unprecedented event in the financial
market of Armenia, Director of `Valletta’ LLC Shahen Stepanyan told
journalists and stressed that the company continues its multi-sectoral
activity and doesn’t rule out holding the fourth issue of corporate
bonds. According to him, at the moment Armenia’s economy is unstable,
but even under these conditions the company carries out its obligations
before all the creditors contentiously. In this respect, this is
unprecedented, he said. Stepanyan also expressed hope that the second
and third issues of corporate bonds will be redeemed with similar
success.

As Financial Director of `Valletta’ LLC Armen Berberyan said, due to
attraction of resources from the bond market the company managed to
implement projects which provided it with 20-25% profit. He also
stressed that the pledge of successful redemption of the first-issue
corporate bonds is also the cooperation with ArmSwissBank, the
underwriter of all the three issues of `Valletta’ LLC. According to
Berberyan, the further activity of the company is not restricted to
this purposeful step. `Valletta’ has numerous development programs to
implement.

Director of the Investment Department of ArmSwissBank CJSC Karen Turyan
said that in the previous 1.5 years the amount of transactions with
`Valletta”s bonds totalled 750mln AMD. The bonds were received by
ArmSwissBank and the Central Bank as a reliable REPO instrument. The
amount of REPO transactions with `Valletta”s bonds totalled 282mln AMD.

Berberyan said that it was early yet to speak about the terms of the
new issue. "Everything depends on the situation on the market but there
will be little difference between the terms of the old and the new
issues." By issuing bonds Valletta not only attracts financial
resources but also involves wide public in its development projects.

To note, the primary placement of non-documentary registered coupon
bonds of this issue of `Valletta’LLC was held from July 31, 2007 to
August 13, 2007. In particular, 7,000 bonds at par value of 50,000
drams each, annual return of 10,5% and 18-month circulation period were
placed. Coupon payments were carried out once per half year.

To recall, the second and the third issues of corporate bonds of
`Valletta’ LLC are presently itemized in the exchange lists. In
particular, primary placement of the second issue of non-documentary
coupon bonds of `Valletta’ LLC in the volume of 500 mln drams was held
on November 12, 2007. The par value of each bond makes up 50,000 drams
(10,000 bonds), circulation period – 24 months, return on
coupons – 10,5%, coupon payments are carried out once per half year.

Non-documentary registered bonds of the third issue in the similar
volume (500 mln drams) were placed in the primary market on July 28,
2008, within the frames of which 10,000 bonds number with 36-month
circulation period, par value of 50,000 drams each, return of 11% and
the term of coupon payments once per half year.