ArmInfo.Funds raised from Ardshinbank's Eurobonds will be used to implement ambitious programs for large enterprises of Armenia that are the bank's customers. This was stated in an interview to a television channel by the Chairman of the board of "Ardshinbank" CJSC Artak Ananyan. In this context, he added that part of the funds will also be directed to stimulate and increase the volume of mortgage lending, which, according to him, will lead to lower interest rates.
In particular, Ananyan drew attention to a number of requirements for private organizations expressing a desire to enter international capital markets. This is a high level of transparency, accountability, the presence of an audit by a large international audit company, the presence of an international credit rating, which should not be lower than the country one. In addition, it is necessary to meet many other parameters of the conditions of the European and American capital markets. In particular, Ananyan drew attention to a number of requirements for private organizations expressing a desire to enter international capital markets. This is a high level of transparency, accountability, having an audit by a large international audit company, the presence of an international credit rating, which should not be lower than the country one. In addition, it is necessary to meet many other conditions of the European and American capital markets. According to Ananyan, a roadmap was developed, within the framework of which, in a short time, the bank team held about 30-40 meetings abroad, in particular in Munich, London, Boston, New York and other cities. In addition, a series of conference calls were held with investors from Japan and the United States.
According to the banker, Eurobonds can be considered as foreign investments, since in the statistical report in the section 'attracted funds' there is a subline called "bonds". , he explained. To note, in January 2020 Ardshinbank placed another tranche of bonds in the amount of $ 300 million on the international capital market with a coupon yield of 6.5% and a maturity of 5 years. The total volume of bids amounted to $ 450 million.
It should be noted that Ardshinbank had previously placed its bonds abroad, namely it became the first private company in Armenia to issue Eurobonds. The first issue was placed on December 9, 2014 with an issue volume of $ 75 million, a coupon yield of 12%, and a primary offering yield of 12%. The bonds of this issue were redeemed on December 9, 2017. This issue was quoted on the Vienna Stock Exchange, and clearing was carried out in the Euroclear and Clearstream systems. This was the first transaction of a private Armenian company in international financial markets after the debut issue of state eurobonds of Armenia in 2013. The successful debut on the Vienna Stock Exchange inspired Ardshinbank for the second more voluminous issue of its bonds already on the Irish Exchange. The second issue, carried out in June 2015, was larger than the first one. This time the issue volume amounted to $ 100 million, the placement was public, the coupon yield was 12%, with a six-month periodicity of payments. The maturity date of the second issue bonds expires on July 29, 2020. As of January 23, 2020, the volume of $ 25 million remained outstanding from the second issue. JP Morgan Investment Bank acts as the general manager of the second bond issue of Ardshinbank. Along with this, Ardshinbank also placed its bonds on the AMX Armenia stock exchange. So, as of January 23 this year 3 tranches of Ardshinbank bonds are quoted on AMX Armenia - one AMD issue in the amount of 1.5 billion drams and two USD issues in total for $ 15 million. The circulation period of dram bonds is 36 months, and dollar bonds - 27 months. The yield on the coupon of dram bonds was set at 10.5%, and the dollar - at 5.5% and 5.4%, respectively. Coupon payments are made once a quarter. The maturity of the dram issue is June 10, 2022, and the dollar issue dates to September 3, 2021 and January 10, 2022.
According to the Financial Rating of the Banks of Armenia prepared by ArmInfo IC, as of October 1, 2019, the volume of funds raised by Ardshinbank from the placement of its own bonds amounted to 25.4 billion drams ($ 53.4 million) or 13% of the total market. Ardshinbank on this indicator as of the reporting date is in TOP-3.
To recall, Ardshinbank was founded in 2003. The majority shareholders of Ardshinbank as of October 1, 2019 are Arins Group LLC (formerly referred to as Business Investment Center LLC) with a 67.97% equity stake and REGION Industrial and Financial Corporation CJSC - 29.52%. Ardshinbank is the second largest bank in Armenia, having one of the largest branch networks, consisting of 63 branches: 18 are located in Yerevan, 42 in the regions and 3 in Artsakh. The Bank has a rating of international reputable rating agencies equal to the country rating of Armenia, which is considered a high rating in world practice.
