Tuesday, August 27 2019 17:35

ArmInfo. Converse Bank completed the initial placement of dram and dollar bonds in the amount of 1 billion drams and $ 10 million ahead of schedule. Thus,  the total volume of bonds issued by the bank reached the equivalent  of 22.3 billion drams.

According to the press service of Converse Bank, the yield on the  coupon of dram bonds is 9.75% per annum, and the dollar yield is 5.5%  per annum. The maturity period for the bonds of these two issues is  36 months. Coupon payments are provided every six months. <Over the  past two years, the Bank has regularly issued corporate bonds.  Clients had the opportunity to purchase bonds in all branches of the  bank, due to which the overwhelming majority of securities (88%) were  purchased by individuals. Institutional investors showed high  interest precisely in dram bonds>, the source notes.

According to the Bank, the above issues of dram and dollar bonds will  be listed on the Armenian stock exchange, which will start their  circulation on the secondary market.

As of August 27, 2019, 4 issues of Converse Bank bonds are quoted on  the Armenian stock exchange AMX. These are 2 dollar tranches in the  total amount of $ 14 million, 1 dram in the amount of 3 billion  drams, and one euro for 5 million euros. All of these issues are on  the Abond main list. Coupon payments for these issues are made once  every six months. The profitability of dollar issues since the first  tranche (from May 5, 2017) on the currently placed ones decreased  from 5.75% to 5.5%, and dram - from August 2017 10.5% to the current  9.75%. Of the Converse Bank bond issues already quoted on the  exchange, $ 1 will be repaid in 2019 for $ 4 million on October 16  (yield 5.25%). The redemption of the remaining three issues (dram,  dollar and euro) will take place in 2021 - April 26.

According to the Financial Ranking of the Banks of Armenia as of  January 1, 2019, prepared by ArmInfo IC, Converse Bank raised 16.7  billion drams ($ 34.4 million) from the placement of its own bonds  with annual growth of 2.8 times. Converse Bank takes the 4th position  in terms of the volume of borrowings from the placement of its own  bonds, and in the 1st position in the annual growth of this  indicator. Assets of Converse Bank as of this date amounted to 281.1  billion drams, liabilities - 242.03 billion drams, total capital -  39.1 billion drams. Converse Bank completed the year 2018 with a net  profit of 4.9 billion drams, exceeding the level of the previous year  by 37.7%.

It should be noted that Converse Bank has been operating in the  Armenian market since September 1996.  As of January 1, 2019, the  shareholders of the Bank are Advanced Global Investments LLc (led by  Eduardo Ernekyan) - 80.94%, HayPost Trust Management B.V. - 14.06%;  Cathedral of the Mother See of Etchmiadzin - 5%.