ArmInfo. On January 27, 2016 during a special ceremony held at NASDAQ OMX Armenia the launch of exchange trading of the bonds issued by "LOAN PORTFOLIO SECURITIZATION FUND I" was announced. As the press- service of NASDAQ OMX informs, the first and the second issues of nominal coupon bond of the Fund will be listed and included in the secondary Bbond list of NASDAQ OMX Armenia, as well as will be allowed to manual and REPO trading. The managing company of the emitter "LOAN PORTFOLIO SECURITIZATION FUND I" is Capital Investment Company. The market maker of the issue is Converse Bank.
The Fund's bonds first issue (ISIN - AMLPSFB21ER2) for a total amount of USA 1,132,800, comprising 11,328 coupon bonds with nominal value of USD 100, coupon rate of 8.5% and maturity period of 36 months will be traded under LPSFB1 ticker symbol, while the second issue of bonds (ISIN - AMLPSFB22ER0) for a total amount of AMD 446,260,000, comprising 44,626 coupon bonds with nominal value of AMD 10,000, coupon rate of 15.0%, maturity period of 36 months will be traded under LPSFB2 ticker symbol.
"This is an important day for the RA securities market, as we are witnessing the birth of a new financial instrument, which is unique and unprecedented in its structure, the number of beneficiaries, as well as financial flows scheme", noted NASDAQ OMX CEO Mr. Konstantin Saroyan.
In his speech Mr. Richard Mills, Extraordinary and Plenipotentiary Ambassador of the USA to the RA, welcomed and thanked all those who had contributed to the realization of this initiative and noted that additional funds are formed through such kind of instrument, which can be used to finance rural development and ensure provision of credits.
Mr. Tigran Karapetyan, General Director, "Capital Investments" CJSC noted that one of the main factors, which increases investment attractiveness of the mentioned financial instrument is the guarantee - 50% of the principal amount, which USAID allocates to the bond owners. He also added that this project is the result of the state - private sector cooperation.
To recall, in the financial history of Armenia, it has been the first securitization of assets by a special fund. These are asset- backed securities (ABS). As ArmInfo informed earlier, the loan securitization fund consists of assets: 55% in USD and 45% in AMD. The pool is organized by universal credit organizations (UCO) of Armenia: CARD Agro- Credit, Garni Invest, Global Credit, Kamurj, and Nor Horizon. Asset pool in AMD amounts to 495,877,138 AMD. ABS is backed by a bucket of 298 loans: 36% agriculture finance, 25% SME finance, and 39% consumer loans. The average size of a loan is 1,664,017 AMD. The average duration is 21 months. The fixed annual interest is 22.04%. Asset pool in USD amounts to 1,258,975 USD. ABS is backed by a bucket of 271 loans: 49% agriculture finance, 44% SME finance, and 7% consumer loans. The average size of a loan is 4,646 USD. The average duration is 27 months. The fixed annual interest is 16.82%. The asset securitization program was initiated and developed by USAID/FED (Finance for Economic Development).
"LOAN PORTFOLIO SECURITIZATION FUND I" is a non-profit company, which was established on August 31, 2015 under the RA law on "ON ASSET SECURITIZATION AND ASSET BACKED SECURITIES" solely for the purpose of carrying out securitization activities and issue of asset backed securities. On September 16, 2015 the fund was registered as a securitization fund by the Central bank of RA. The fund has been established for 3 years starting from the date of placement of asset backed securities with possibility of extension up to 18 months.
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