Tuesday, April 29 2014 18:41
National Mortgage Company mulls issue of mortgage bonds of European model
ArmInfo. National Mortgage Company(NMC) mulls issue of mortgage bonds of European model, Mher Yedigaryan, NMC President told ArmInfo commenting on the statement by Zara Chatinyan, a KfW Armenia representative, on the upcoming issue of mortgage bonds by NMC, following today's meeting on energy efficiency for multi-apartment buildings in Armenia.
Yedigaryan explained that the European model of bonds fundamentally differs from the American model. Loan risks of the American model bonds are assumed by the investor, meanwhile, in the case of European bonds, it is the emitter that undertakes risks. The last model, Yedigaryan said, implies application of tougher regulatory measures to banks to avoid deterioration of the mortgage portfolio quality.
Yedigaryan said the program of the new issue is under discussion so far. Z. Chatinyan, in turn, told ArmInfo the issue of mortgage bonds by NMC will allow diversifying the sources of financing of affordable mortgage loans. "KfW's task is to invite consultants who will study all the possibilities and make recommendations on how to better organize issue of bonds," Chatinyan said.
To recall, NMC entered the Armenian equity market in Nov 2011 with an issue of debt securities in the amount of 1 bln drams and with a 9.6% yield. At present, corporate bonds of at once three tranches of NMC are quoted on the stock exchange. On 23 April, NMC placed the 10th tranche of mid-term corporate bonds through private offering at NASDAQ-OMX Armenia.
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