Unibank is heavily funded from domestic market

ArmInfo. Unibank strenuously being  funded from the domestic market.  First, by issuing shares, the bank  raised funds to raise capital to the normatively required 30 billion  AMD, and then bonds were issued, aimed at funding funds for the  withdrawal of credit from a downtrend.

From 2016 to the present day Unibank has carried out 3 additional  shares, the latter followed in February this year. In anticipation of  this, the status of the bank in 2015 was changed from CJSC to JSC.  Before the start of additional issues, the regulatory total capital  of the bank as of January 1, 2016 was 18 billion AMD, after the  issuance of emissions by January 1, 2017, 27.03 billion AMD, actually  not reaching the normative 30 billion AMD. The bank was able to  fulfill the demand of the regulator only in the first quarter of  2017, during which the next additional issue of shares took place,  which made it possible to increase the regulatory total capital to  31.2 billion AMD.

In 2016, in April and November, the bank also issued a USD tranche of  coupon bonds in the amount of $ 5 million at a yield of 8%, and an  AMD tranche for 250 million AMD at a yield of 13.5%. Bonds of these  issues have a two-year circulation period.

Unibank shares are quoted on the "A" listing list, USD bonds in the  main "Abond" list, and AMD bonds in the secondary list of "Bbond".  According to Nasdaq OMX Armenia, the issue of Unibank's AMD bonds was  listed on June 8 this year. And is allowed to enter into targeted and  repo transactions.

According to the Financial Rating of Armenian Banks as of April 1,  2017, prepared by the IA ArmInfo, the volume of credit investments of  Unibank in the context of five years has sharply reduced the annual  growth from 18% to 0.3%. In particular, over the past five years, the  bank has slowed the growth of retail lending from 35% to 9%, while  corporate and from 8% growth fell to a 3% decline. The share of NPL  in the bank's loan portfolio for a year does not go down from 18%,  exceeding the international critical limit. The reason for this is  possibly because over 76% of overdue loans have accumulated in a  hopeless group, which continues to replenish. As a result, Unibank's  net profit slipped 57.4% year-on-year. As of April 1, 2017, the  shareholders of the bank are Ripatonso Holdings LTD - 88.1%, Gagik  Zakaryan and Georgy Piskov - at 5.95%. These bankers - the former  owners of Moscow's Yuriastrumbank and the current majority  shareholders of the UNIStream money transfer system - are  shareholders of the offshore company Ripatonso Holdings LTD.