ArmInfo. ARARATBANK has placed the 12th issue of its AMD coupon bonds in the amount of 400 mln AMD with a 13% yield and 2-year maturity. Deputy CEO of ARARATBANK David Harutyunyan said at today's press conference that the given issue includes 40 thsd non-documentary bonds with a nominal value of 10,000 AMD each and quarterly coupon payments. Harutyunyan said that this is the 6th issue in terms of Armenian dram. He added that the initial placement will be on 11-22 July 2016. The secondary placement on NASDAQ OMX ARMENIA will take place after the listing.
When replying to ArmInfo's question, Harutyunyan said that the funds received from the sale of the 12th issue will be spent on SME financing. He added that the 13% yield meets the market trends and is set as a result of monitoring of the market of government bonds and the public opinion poll of the potential customers. "Both individuals and legal entities can acquire bonds. ARARATBANK is the operator of the Central Depository of Armenia and has an opportunity to open personal accounts for their customers, which considerably reduces the time of purchase and sale of securities," Harutyunyan said. He added that individuals are mostly (95%) interested in USD bonds, while AMD bonds enjoy the demand of legal entities. Besides purchase and sale of bonds, the market participants will also have an opportunity to conclude REPO transactions.
Harutyunyan also told ArmInfo that the 13th issue of bonds is scheduled for autumn 2016. However, it is not yet known whether the bonds will be issued in terms of AMD or USD.
To recall, the placement of the first issue of ARARATBANK undocumentary coupon corporate bonds worth 250 mln AMD with quarterly coupon payment, annual yield of 8%, circulation period of 1 year, took place on 3 May 2007. The placement of the second issue of ARARATBANK undocumentary corporate bonds worth 400 mln AMD, with annual yield of 9% and circulation period of 1,5 years, took place from 9 till 24 June 2008. The placement of the third issue was worth 250 mln USD with 10% annual yield and 1.5 years of maturity. The bank carried out the fourth issue in July 2011. The amount totaled 250 mln AMD with 12% yield. In 2012 ARARATBANK was the pathbreaking one to issue currency bonds. This was the fifth issue with the amount of 1 mln USD and 9% yield. The sixth issue took place in 2013, the currency bonds totaled 1 mln USD with 8.5% yield and 3 years of maturity. The seventh issue took place in 2013 and comprised AMD bonds with the amount of 400 mln AMD, 13% yield and 3 years of maturity. The eighth issue was 1 mln USD-worth, with 8% yield and 4 years of maturity. The ninth issue was 2 mln USD-worth, with 3 years maturity. The tenth issue was made in 2015 2 mln USD-worth, with 2 years of maturity. As of today there are 5 issues (from sixth to tenth) of ARARATBANK's bonds traded on the stock market. ARARATBANK has recently placed its 11th issue of USD coupon bonds worth 1 mln USD with annual yield of 7% and circulation period of 3 years. As of today there are 5 issues of ARARATBANK's bonds traded on the stock market: 1 in terms of AMD - ARBKB7 (2013, 400 mln AMD), and 4 in terms of USD - ARBKB8 (2014, $1 mln), ARBKB9 (2015, $2 mln), ARBKB2A (2015, $2 mln), ARBKB2‚ (2016, $1 mln), which are listed Bbond.
To note, according to the Financial Rating of Armenian Banks prepared by ArmInfo News Agency as of April 1, 2016 ARARATBANK's assets amounted to 130.7 bln AMD. The share of investments in securities totaled more than 14.2bln AMD or 11%. The liabilities made up 108 bln AMD, the total capital - 22.7bln AMD. In Q1 2016 net profit of the bank totaled 176.8 mln AMD (2.7-fold quarterly growth), ROA and ROE were 0.52% and 3.33% as of Q1 2016 end, retaining the bank's place in top 10. According to latest data European Bank for Reconstruction and Development holds 25%+1 of the bank's shares, 64.24% of the shares belong to Flash petrol trader (President Barsegh Beglaryan), and 10% to Rural Impulse Fund II (part of Belgian Ickofin Investment Management- Incofin IM).