ArmInfo.The universal credit company First Mortgage Company (PIK UKK) plans to issue two tranches of registered, coupon, non-documentary bonds with issue volumes of 100 million drams and $ 800 thousand secured by mortgage loans. This is evidenced by the prospectus for the issue of these bonds posted on the website of the Central Bank of Armenia.
According to the document, 1,000 dram and 8,000 dollar bonds will be issued, each with a nominal value of 100 thousand drams and $ 100, respectively. The coupon nominal yield on dram bonds is 10.5%, and on dollar bonds - 6.4%. The maturity of these bonds is 3 years. Coupon payments are provided once every six months. Release and placement of tranches will take place on the same day. The placement of bonds of these two tranches was entrusted to Ameriabank, which in the secondary market will act as both an underwriter and a market-maker of bonds. A guaranteed placement agreement was signed between FMC UCC and Ameriabank on December 17, 2019.
The ratio of the nominal value of the mortgage portfolio employee to the tranches of bonds for the dram issue amounted to 204% as of March 2, 2020, and 146% for the dollar one, and these figures may change during the circulation of these securities, but should not be lower than the minimum threshold established by law.
A mortgage portfolio securing bonds must meet the following criteria: territorial location of collateral - Yerevan; maximum loan / pledge ratio - 70%; the earliest repayment period is March 10, 2026; loan as of March 2, 2020 should be classified as standard; according to the loan repayment history, at least one repayment (interest payments and principal amount) must be.
The FMC UCC filed the application for the planned issue with the Central Bank of Armenia on January 23, 2020, and since there were no refusals from the Central Bank within 30 legislative days, the application is considered approved.
Decisions on these issues were made at the general meeting of shareholders of PIK UKK on December 16, 2019 and March 27, 2020.
As David Atanesyan, FMC UCC Director General, informed ArmInfo, the bonds will be issued in May after the lifting of the state of emergency, but nonetheless, everything will depend on the development of the situation related to measures to prevent the spread of the coronavirus pandemic.
Recall that the debut of securitization of mortgage bonds in the capital market of Armenia took place on December 12, 2017 and on the same day it was possible to place the entire volume presented. Then FMC UCC issued 2 tranches - dollar and dram bonds in the amount of 100 million drams and $ 500 thousand secured by mortgage loans. The coupon yield on dram bonds was 10.5%, and on dollar bonds - 6.5%. The maturity of these securities was set at 2 years. ARARATBANK acted as an underwriter and market maker of toga bonds.
According to the ranking of credit companies of Armenia as of December 31, 2019, prepared by ArmInfo IC, the loan portfolio of the first Mortgage Company UCC ("PIC") amounted to 6.8 billion drams or $ 14.3 million with an annual decline of 1.5%. In the structure of the company's assets, the share of the loan portfolio decreased over the year from 92% to 88%. The "First Mortgage Company" UKK has been operating in the Armenian market since April 2004. Shareholders are Nshan Atinizyan - 35%, Margrit Atinisyan - 35%, David Atanesyan - 30%.
