ARARATBANK places the third issue of its bonds ahead of time

The demand for the bonds was 23% higher than the supply. As a result, the bonds were placed ahead of time (Dec 25). The third issue consisted of 25,000 bonds worth 10,000 AMD each. The yield was 10%, the circulation period - 18 months. The coupon payments will be made on a quarterly basis. The money received from the primary domestic market will be spent on SME crediting.

To remind, Dec 24 ARARATBANK redeemed the second issue worth 400mln AMD. The receipts have been spent on SME crediting. The issue consisted of 40,000 bonds each worth 10,000. The yield was 9%, the circulation period - 548 days.

The primary placement of the second issue took place June 9-24 2008. The coupon payments were made on a quarterly basis. According to NASDAQ OMX Armenia, the amount of the 41 transactions carried out with the bonds of the second issue throughout their circulation period (July 23 2008-Dec 24 2009) totalled 265mln AMD. The average yield was 9.09%. The first corporate bonds were issued in May 2007: 25,000 bonds each worth 10,000 AMD. The yield was 8%, the circulation period - 1 year. The majority shareholders of ARARATBANK is Flash, one of the biggest oil traders in Armenia, (74.1%) and EBRD (25%+1). As of Oct 1 2009 the capital of the bank totalled 7.7bln AMD, assets - 29bln AMD, credits - 15.9bln AMD.