Monday, December 23 2019 17:24
Karine Melikyan

Converse Bank completed the initial placement of dram and dollar  bonds prior to the scheduled date

Converse Bank completed the initial placement of dram and dollar  bonds prior to the scheduled date

ArmInfo. Converse Bank completed prior to the scheduled date the initial placement of the regular dram and dollar bonds in the amount of 1 billion drams and $  5 million, respectively. As ArmInfo was told by the press service of  the bank, the initial offering of bonds of these issues was planned  to be completed on February 28, 2020. It is appropriate to note that  in case of previous bonds issues by Converse Bank the initial  placement was also completed ahead of schedule.

According to the source, the yield on the coupon of dram bonds is  9.5% per annum, and dollar - 5.25% per annum. The maturity period for  the bonds of these two issues is 36 months. Coupon payments are to be  made every six months.  These issues will be included in the list of  corporate bonds of the AMX Armenia stock exchange for turnover in the  secondary market.

Thus, in 2019, Converse Bank has already carried out the second  placement of its bonds. The previous issue was dated April 15 this  year with the completion of the initial public offering on August 23  and listing on September 12, these were dram bonds worth 1 billion  drams and dollar bonds worth $ 10 million.

"The completion of the initial placement more than 2 months earlier  than the stipulated time indicates a high interest in Converse Bank  bonds. In total, this year the bank issued four tranches of bonds  placed in two stages, thereby significantly increasing the share of  dram bonds in the portfolio, which is about 20 billion drams. Due to  long-term issues Converse Bank is one of the leading participants in  the corporate bonds market of Armenia, "the bank's statement  reads.

As of December 23, 2019, 5 issues of Converse Bank bonds are listed  on the Armenian AMX stock exchange. These are 2 dollar tranches in  the total amount of $ 20 million, 2 dram tranches in the amount of 4  billion drams, and 1 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 currently placed bonds decreased  from 5.75% to 5.25%, and dram - from 10.5% in August 2017 to the  current 9.5%. Among the Converse Bank's bond tranches quoted as of  December 23 on the exchange platform in 2021, namely April 26, one  tranche of dollar, euros and dram, respectively, by $ 10 million  (yield 5.25%), 5 million euros (yield 4%), 3 billion drams (yield  9.5%), will be paid off, which were issued on April 26, 2018 with the  completion of the initial public offering on August 21 and entering  the listing list on September 5 of the same year. The remaining two  issues will be redeemed in 2022, namely April 15, and these are AMD  bonds for 1 billion drams (yield 9.75%) and dollar bonds for $ 10  million (yield 5.5%).

According to the Financial Rating of the Banks of Armenia prepared by  ArmInfo IC as of October 1, 2019,Converse Bank raised over 18.5  billion drams ($ 38.9 million) from the placement of its own bonds  with a y-o-y growth of 10%.  Converse Bank takes the 4th position in  terms of the volume of borrowings from the placement of its own  bonds.  Assets of Converse Bank as of this date amounted to 302.2  billion drams, liabilities - 260.1 billion drams, total capital -  42.1 billion drams. Converse Bank completed 9 months of 2019 with a  net profit of 3.9 billion drams, exceeding the level of the previous  year by 32.6%.

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

 

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Search by date

Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

Volume of satisfied bids

200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000