Wednesday, April 17 2013 19:14
National Mortgage Company carries out private placement of fifth tranche of corporate bonds worth 1 bln AMD
ArmInfo. The National Mortgage Company (NMC) UCO has carried out the private placement of the fifth tranche of corporate bonds worth 1 bln AMD (10,000 bonds at the price of 100 thsd AMD each), the press service of the company told ArmInfo.
The placement of the tranche of registered discount bonds with a 6-month maturity took place at NASDAQ OMX Armenia with participation of 5 members of the stock exchange. The demand for the company's corporate bonds (the number of applications for acquisition of the bonds) exceeded the supply, totaling 1.250 bln AMD. The average yield of the given issue was 9.3647%.
The source says that the NMC will spend the funds attracted from the market on refinancing of mortgage loans.
To note, the first tranche of the NMC's corporate bonds (NMCCB1) worth 1 bln AMD was issued in November 2011. The yield was 9.6%. It should be noted that the interest rates of alternative financial instruments (government bonds) in Armenia still remain attractive for the issuers of corporate bonds. The yield for the AMD (short-term) deposits is 10.4% on the mean, government bonds (with up-to 1-year maturity) - 9.9%. At the moment only one issue of AMD corporate bonds is listed at the stock exchange - the 4th tranche of ARARATBANK's bonds (the redemption will take place on 7 July 2013).
To recall, the National Mortgage Company UCO was founded on 16 June 2009 by the decision of the Central Bank of Armenia. As of late Q1 2013, the total amount of the NMC's refinanced loans exceeded 20 bln AMD (over 2160 loans). The monthly amount of refinancing is 600-800 mln AMD, and the interest rate is 8.75%.
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