ArmInfo. Loan portfolio backed bonds are placed on NasdaqOMX Armenia stock exchange for the first time. "LOAN PORTFOLIO SECURITIZATION FUND I" is the issuer of the bonds. The Fund submitted for placement two issues of coupon bonds with the total nominal value of USD 1,132,800 (LPSFB1) and AMD 446,260,000 (LPSFB2). LPSFB1 bonds include 11,328 coupon bonds with nominal value of USD 100, coupon rate of 8.5% and maturity period of 36 months.
LPSFB2 bonds include 44,260 coupon bonds with nominal value of AMD 10,000, coupon rate of 15.0% and maturity period of 36 months.
Placement results for LPSFB1 bonds:
Purchase orders with a total value of USD 1,135,525.50 were placed for the Fund's LPSFB1 bonds. The Fund has attracted USD 1,135,425.26 from placement. Cut-off price of the bonds was USD 100.2313, weighted average yield amounted to 8.4999% and the cut-off yield stood at 8.5%.
Placement results for LPSFB2 bonds:
Purchase orders with a total value of AMD 448,109,248.15 were placed for the Fund's LPSFB2 bonds. The Fund has attracted AMD 448,069,086.01 from placement. Cut-off price of the bonds was AMD 10,040.5369, weighted average yield and the cut-off yield amounted to 15%.
"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 BACKEDSECURITIES" solely for the purpose of carring 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
The securities have three-level protection against risks. Development Credit Authority (DCA) USAID guarantees 50% of the risk.
In the financial history of Armenia, it is the first securitization of assets by a special fund. These are asset- backed securities (ABS). 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 was initiated and developed by USAID/FED. The managing company of the emitter "LOAN PORTFOLIO SECURITIZATION FUND I" is Capital Investment Company. The market maker of the issue is Converse Bank.
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