Wednesday, May 13 2020 19:14

ArmInfo.Ameriabank placed AMD 5 billion dram bonds ahead of schedule and immediately prepared the next AMD tranche in the same amount for placement.

As ArmInfo was informed in the press service of the bank, the public  offering of the previous tranche of AMD bonds in the amount of 5  billion drams began on April 28 and the completion was planned on  July 3, but high demand made it possible to fully place the volume on  May 7.

It was the high demand for the dram tranche that prompted Ameriabank  to announce the next public offering since May 18 this year. the next  issue of registered, coupon and non-documentary dram bonds with an  issue volume of 5 billion drams and a coupon yield of 9%. The  maturity period of the bonds of this issue is set at 30 months, and  the periodicity of coupon payments is once a quarter. The completion  of the initial placement of bonds of this issue is scheduled for July  31. As part of the dram issue, 50 thousand bonds with a nominal value  of 100 thousand drams each will be issued. Full redemption of bonds  of this issue will take place on November 18, 2022.

Those wishing to purchase bonds of this issue need to, after filling  out an application-order and sending it to the underwriter, make  payment to the account 1570043120372900 opened in Ameriabank. A table  with daily prices is posted on the Ameriabank website - see link  https://www.ameriabank.am/userfiles/file/IR/AMD_Prices_May_2020_arm.pdf.  You can find out more about the  terms of issuing bonds of the next dram tranche on the bank's website:  https://www.ameriabank.am/userfiles/file/IR/AMD_bonds%20t&c_May_2020_arm.pdf The report also notes that the prospectus for the issue of this issue was registered with the Central Bank on March 16,  2020.

It should be noted that on April 28, 2020 Ameriabank announced the  public placement of two issues of registered, coupon and  non-documentary bonds with the issue volume of 5 billion drams and $  10 million. As part of the dram issue, 50 thousand bonds with a  nominal value of 100 thousand drams and 100 thousand bonds with a  face value of 100 thousand drams were issued bonds with a face value  of $ 100. The yield on the coupon of dram bonds is 9.5%, and dollar -  5%. The circulation period in both cases is 27 months, and the  frequency of coupon payments is once a quarter. The placement of the  dram tranche ended ahead of schedule - May 7, and the dollar tranche  is still in process (the scheduled completion date is July 3).

According to AMX, the stock exchange as of May 13 this year 13 issues  of Ameriabank bonds are quoted - 10 dollar and 3 dram. The total  volume of issue of dollar issues is $ 85.710 million, and AMD - 8  billion drams. The repayment of dollar tranches will take place in  2020-2023: in June and December 2020 - two tranches; in May,  September and November 2021 - four tranches; in February June and  October 2022, three tranches; and in May 2023, one tranche. And dram  tranches will be repaid in September 2021 (one) and February 2022  (two).

According to the Financial Rating of the Banks of Armenia as of  December 31, 2019 prepared by ArmInfo IC, Ameriabank is the leader in  the amount of funds raised from the placement of corporate bonds -  54.6 billion drams or $ 113.8 million. In a three-year context, the  bank increased this indicator 3 times. Ameriabank accounts for about  30% of the total volume of this indicator in the banking sector.  Ameriabank is also very active in the corporate bond market of  Armenia, having started issuing its securities since March 2016, and  in the same year initiated the first issue in the international  market - in June, through its investment manager, responsAbility  Investments AG, successfully placed $ 20 million debt securities in 4  Luxembourg investment funds. Ameriabank has been repeatedly  recognized as "The best custodian operator of the depositary system  account in the international securities market." Recall that  Ameriabank, operating on the Armenian market since October 31, 1996,  is a universal bank providing investment, corporate and retail  banking services in the form of a comprehensive package of banking  solutions. On January 1, 2020, the shareholders of the bank are  Ameria Group CY Ltd. - 56.47%, EBRD - 17.76%, Asian Development Bank  - 13.94%, ESPS Holding Limited - 11.83%.