Monday, September 3 2018 19:02

ArmInfo. Converse Bank has successfully completed the placement of AMD, USD and EUR bonds, which started on April 26 this year. As the press service of the Bank told ArmInfo, these issues will be put on the list of corporate bonds of the Nasdaq OMX Armenia stock exchange on September 5 for circulation on the secondary market.

 

"This time, Converse Bank placed not only AMD and dollar bonds, but also EUR bonds, having set the circulation period of these securities in 3 years against the two-year previous issues," said Converse Bank Financial Director Hrant Hakobyan.

 

The volume of the AMD issue is 3 billion drams, and the coupon yield is 9.5% per annum. The USD issue volume is $ 10 million, and the coupon yield is 5.25% per annum. The volume of the EUR issue is 5 million euros, and the coupon yield is 4% per annum. Payments on coupons are to be made once every six months. The bonds are guaranteed by the Deposit Guarantee Fund.

 

To note, as of September 4 this year  on NASDAQ OMX Armenia, two tranches of Converse Bank's dollar bonds in the amount of $ 6 million and $ 4 million issued in May, August and October 2017 and one tranche of AMD bonds amounting to 1 billion in AMD. The yield on the dollar bonds of the Bank was 5.75% and 5.25%, and on AMD bonds - 10.5%. In three cases, the circulation period is set at 2 years, and coupon payments are provided once every six months.

 

According to the Financial Rating of the Armenian Banks prepared by ArmInfo, as of July 1, 2018, , Converse Bank attracted from the placement of its own bonds funds in the amount of 13.5 billion drams ($ 27.8 million) ensuring 4.6-fold y-o-y growth. In terms of raising funds from placement of own bonds Converse Bank takes the 4th position, by quarterly growth of this indicator (2.3 -fold) - the 1st position, and by y-o-y growth - the 2nd position. Assets of Converse Bank for this date amounted to 257 billion drams, liabilities - 220.2 billion drams, and total capital - 36.8 billion drams. According to the results of the first half of the year, the Bank's net profit exceeded AMD 2 billion, exceeding the level of the previous year by 34.3%. Converse Bank has been operating in the Armenian market since September 1996. As of July 1, 2018, 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%.