Thursday, October 13 2011 17:53
National Mortgage Company prepares for its first issue of corporate bonds
ArmInfo. In late October the National Mortgage Company (NMC) is preparing to carry out its first issue of corporate bonds worth 1 bln AMD. The bonds will be secured with loans provided by the company to the banks and partner credit organizations. Mher Yedigaryan, Executive Director of the NMC, told ArmInfo that the given bonds will be placed at NASDAQ OMX Armenia via an auction. Both legal entities and individuals will be able to acquire the bonds through the mediation of the stock exchange participants.
Yedigaryan said that the company is going to issue 10,000 bonds worth 100,000 AMD each and 6-month maturity. According to him, the bonds will be placed at a discount price, and the annual yield of the bonds is formed with due regard for the trade results. Taking into account the NMC peculiarities and its bonds, the yield is expected to be by 0.25 pct points higher than that of the government bonds with a similar maturity. Yedigaryan pointed out that in case the yield of the government bonds is 8%, the yield of the NMC bonds is expected to be approximately 8.25%.
"The NMC strategy has always envisaged emission of bonds, and this is our first step, which will allow revealing the interests of the potential investors and making the following tranches in big volumes on the basis of this analysis", Yedigaryan said. He added that today the balance of the portfolio of the NMC refinanced loans is 13 bln AMD, with the total volume of the refinanced mortgage loans being over 15 bln AMD, and the total capital of the company is 8.5 bln AMD.
As of 30 Sept 2011, the assets of the NMC totaled 14.7 bln AMD, 86% of which fell on provision of crediting. At present the NMC has general contracts with 15 commercial banks and 3 credit organizations: ArmBusinessBank, ARARATBANK, Armeconombank, Artsakhbank, Anelik Bank, Areximbank- Gazprombank Group, Ardshininvestbank, VTB Bank (Armenia), HSBC Bank Armenia, INECOBANK, Byblos Bank Armenia, Unibank, Armenian Development Bank, Converse Bank, ArmSwissBank, as well as First Mortgage Company, Global Credit, and Express Credit.
National Mortgage Company UCO was founded on 16 June 2009 by the decision of the Central Bank of Armenia.
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