HSBC Bank Armenia interested in issue of new bonds

Speaking of the current situation in the market of corporate bonds, Slater pointed out that today the Armenian market of corporate bonds is rather passive, the number of new issues is very small. Investors are reluctant to invest in Armenian bonds with 1 year repayment period and 9% p.a. yield despite the relative stability of Armenian dram since March 2009.

To note, 10,000 coupon bonds issued by the HSBC Bank Armenia (nominal value - AMD 100,000, annual coupon - 9% per annum, maturity period - 365 days, Depository code - AMHSBCB11ER8, Stock Exchange code - HSBCB1) matured on 13 January 2010. In accordance with the terms defined in the Prospectus, the nominal amount and accrued interest with total value of AMD 1,090,000,000 (one billion ninety million) were successfully paid to investors' accounts on 14 January 2010. HSBC Bank Armenia joined NASDAQ OMX Armenia on 30 January 2009.

According to the data of NASDAQ OMX Armenia, the volume of transactions in the stock exchange over the whole period of circulation (from 2 Feb 2009 to 13 Jan 2010 inclusive) of HSBC Bank Armenia bonds amounted to 1.6 bln AMD. Over the specified period, a total of 133 transactions with the bank's bonds were carried out at the average yield of 9,9219%. The maximal yield was fixed at 15,0126%, and minimal yield - at 8,9313%.

To recall, HSBC Bank Armenia has been operating in Armenia since 1996, 70% of shares belong to "HSBC Europe B.V." and 30% - to "Wings Establishment". As of 1 Oct 2009 the total capital of the bank was 16.5 bln AMD, assets - 138.6 bln AMD, net profit - over 1 bln AMD.