Thursday, August 3 2017 19:08
Alina Hovhannisyan

Converse Bank started placement of its 1 billion AMD bonds

Converse Bank started placement of its 1 billion AMD bonds

ArmInfo. Converse Bank has  started placement of its AMD 1 billion bonds since August 3. As the  press service of the Bank told ArmInfo, the minimum purchase package  contains 15 bonds worth 1.5 million AMD. Underwriter of Converse  Bank's bonds is the company "Capital Investments", which in the  secondary market will act as a market-maker of this issue.

According to the source, Placement will be followed by listing of the  bonds on NASDAQ OMX Armenia corporate bonds' platform for trading on  the secondary market.

The total value of the issue is AMD 1 billion. The face value of one  bond is AMD 100.000, the maturity period is 24 months with  semi-annual coupon payment frequency. The coupon rate is 10.5% per  annum, and the effective rate is 10.78 %.

The minimum number of bonds to be purchased is 15, which is AMD  1.500.000 in monetary terms.

"This is already the second placement this year. The first was made  in USD. The Bank, adhering to its policy of offering its customers a  wider range of banking products, this time offers AMD bonds, which  are attractive in financial market due to  growing interest in them",  - said Grant Akopian, Financial Director of Converse Bank, adding  that the attracted funds would be used for lending to  various  sectors of economy.

According to the RA Law on  "Guaranteeing of Remuneration Of Bank  Deposits Of Physical Entities", the funds attracted via nominal  coupon bonds issued by the Bank are considered as guaranteed banking  deposit, and are guaranteed by the Deposit Guarantee Fund of Armenia.   Capital Investments  CJSC will be the registrar and the market maker  for the issued bonds.

Note that Converse Bank CJSC's shareholders are "Advanced Global  Investments" LLC (80,94%), HayPost trust Management B.V. Company  (14.06%), the final beneficiary of which is Eduardo Eurnekian,  Argentine businessman of Armenian origin, and the Armenian Apostolic  Church (5%).

The Bank provides  whole range of banking services: lending,  deposits, payment cards, Investment and depositary services , remote  services, online payments, etc.

To remind, Converse Bank has been operating in the Armenian market  since September 1996. As of July 1, 2017, the Bank's shareholders are  Advanced Global Investments LLc (head-Eduardo Ernekian) - 80.94%,  HayPost Trust Management B.V. - 14.06%, the Cathedral of the Mother  See of Etchmiadzin - 5%. As of 01.07.2017, the Bank's assets amount  to AMD 217,338,330 thousand, the liabilities - AMD 183,270,439  thousand, and the total capital - AMD 34,067,891 thousand.


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