E. Marutyan: Bonds of GLOBAL CREDIT UCO are alternative to bank deposits by level of yield

ArmInfo. Both USD and AMD bonds of GLOBAL CREDIT UCO by level of their yield are an alternative to the equivalent bank deposits, Eduard Marutyan, Chairman of GLOBAL CREDIT UCO Board, expressed such opinion at today's press conference related to the official statement that public offering of GLOBAL CREDIT's USD and AMD corporate coupon bonds will be held at NASDAQ OMX Armenia on November 17.  "GLOBAL CREDIT is conducting the public offering of the bonds to satisfy the growing demand for the services.  The company will spend the funds from the issue and the placement on increasing the financial services, elaborating and introducing new loan products, as well as on expanding the company's geography", Marutyan said.

Vaghinak Saroyan, CEO at Renesa Investment Company, has told ArmInfo that the yield of the securities exceeds the rates of similar deposits in the banks - 9.5% and 15% p.a. for the bonds of GLOBAL CREDIT versus 7.4% and 13.4% for USD and AMD deposits (CBA's data as of 1 Oct 2015). "In addition, when comparing with the similar bonds on the stock exchange, for instance, with the two USD issues of Araratbank, we also see a difference - 7.25%-8.5% versus 9.5% for USD bonds of GLOBAL CREDIT UCO. One should also pay attention to the Armenian Eurobonds, whose latest issue had a 7% yield," says Saroyan, noting that in practice it is easier to diversify the bonds - their portfolio has higher liquidity as compared to the deposits and it is also easier to control that portfolio. He informed that of GlOBAL CREDIT UCO has been according to the monitoring of the potential buyers, conducted preliminary by Renesa Investment Company. As soon as the bonds of GLOBAL CREDIT UCO are placed, the demand will exceed the supply.

The Executive Director of GlOBAL CREDIT UCO Luiza Igraryan introduced to the attendees the prospect of bonds' emission. Particularly, according to her, a total of 10,000 USD and AMD nominal coupon bonds will be issued in two tranches - with the nominal value of $100 and 10,000 AMD respectively. She also added that the first tranche is the issue of nominal coupon USD bonds worth $1 million, and the second tranche is the issue of nominal coupon AMD bonds worth 100 million AMD.  The maturity of the bonds is 2 years (USD) and 1 year (AMD).  Renesa Investment Company will be the underwriter and marketmaker of the securities. Individuals, private entrepreneurs and legal entities can acquire the bonds. "So, GLOBAL CREDIT UCO opens up an opportunity for beneficial investments and more effective placement of financial means", Igraryan noted.

According to the Ranking of Credit Companies of Armenia by the Agency of Rating Marketing Agency (ArmInfo), GLOBAL CREDIT is on the list of the top ten universal credit companies in Armenia in terms of the main balance sheet figures. As of 1 Oct 2015, GLOBAL CREDIT's assets amounted to 9.7 bln AMD (9th position on the market), with 87% of this amount being provision of crediting - 8.4 bln AMD (8th position). The company demonstrated 23.4% y-o-y growth in assets due to 26% rise in lending. This allowed the company to considerably increase the net profit - 3.3-fold, and the total capital - by 27% - to 1.2 bln AMD. UCO CJSC "GLOBAL CREDIT" was registered by the CBA on 26 October 2010 following the merger of Washington Capital UCO (registered in September 2005) and Credit Union UCO (registered in November 2009). In Q2 2014, GLOBAL CREDIT merged with GFC General Financial & Credit Company (registered in May 2007). By today, GLOBAL CREDIT has only one branch in the capital.

To recall, Renesa Investment Company was founded in March 2001 and was registered in April 2001.  Since January 2002, Renesa has been a member of the Armenian Stock Exchange, which was later renamed into NASDAQ OMX Armenia. Since December 2008, Renesa has been a member of the securities registration system. The shareholders of the company are Eduard Marutyan (50%) and Araik Karapetyan (50%). In 2014, Renesa was declared as the best investment company in Armenia. Renesa has repeatedly been the underwriter and marketmaker of the Armenian issuers' bonds.