ArmInfo. On July 9, "Fast Credit Capital" Universal Credit Organization (UCO) will start issue and placement of its dram and dollar bonds with issue volumes of 400 million drams and $ 4 million, respectively. This is evidenced by the July 3 decision on registration of the issue prospectus of these tranches, posted on July 6 on the CBA website.
According to the source, these are registered, coupon, non-documentary bonds, which, in the framework of dram (AMFSCRB23ER3) and dollar (AMFSCRB24ER1) tranches, will be issued in the amount of 40 thousand each. The nominal value of dram bonds is set at 10 thousand drams each, and dollar bonds - $ 100 each. The y-o-y yield on the coupon of dram bonds is 10%, and dollar - 6.5%. The coupon payments are made once every six months. The maturity of the bonds of these two tranches is 36 months. Armswissbank will act as the underwriter and market maker of these issues, according to an agreement concluded with Fast Credit Capital UCO on January 14, 2020.
The issue prospectus states that during the placement 36 thousand bonds of dram tranche and the same amount of dollar tranche will be placed on the Armenian Stock Exchange -AMX, and the remaining 4 thousand bonds from each tranche will be acquired by the market maker at the average weighted price formed during the auction.
As Head of Treasury at Fast Credit Capital UCO CSJC Edmond Eloyan told ArmInfo, the funds raised from the placement of these bonds are planned to be used for consumer lending, mortgage lending, micro-business financing, and agricultural lending. To the question of ArmInfo, to which direction the majority of the funds raised from the placement of bonds would go, he replied that the main emphasis would be placed on consumer loans and mortgages.
According to the ranking of credit companies of Armenia prepared by ArmInfo IC, as of March 31, 2020, the assets of Fast Credit Capital UCO amounted to 43.6 billion drams ($ 86.5 million). In the structure of the company's assets, the share of credit investments accounts for over 86% or 37.6 billion drams ($ 74.5 million). In terms of assets and volume of credit investments, "Fast Credit Capital" UCO is included in TOP-5 universal credit companies of Armenia.
The total capital of the company is 10.7 billion drams or $ 21.2 million (7th position among the UCOs). Fast Credit Capital completed the Q1 of 2020 with a net profit of 965.1 mln drams or $ 1.9 mln, taking the second position in the UCO market by this indicator. In y-o-y terms, the company increased its net profit by 83%, total capital - by 95.1%, assets - by 30.4%, credit investments - by 18%. The company increased its total liabilities in y-o-y terms by 17.7% - up to 32.9 billion drams or $ 65.2 million, having maintained in TOP-5 by this indicator with a rise to the 4th position. In the structure of the company's liabilities, about 68% is accounted for other loans received from the money market, and loans and credits attracted from banks / financial organizations account for about 19%, with a y-o-y increase in the absolute value of the first one by 15.5% and a decline of the second one -by 14.1%. As of April 1, 2020, the accumulated profit of Fast Credit Capital amounted to 3.4 billion drams or $ 7 million (the 7th position in the UCO market), with a y-o-y growth of 54.6%.
It should be noted that "Fast Credit Capital" UCO was registered with the Central Bank of Armenia on October 14, 2011. The authorized capital of the company, amounting to 7 billion drams (4th position in the UCO market), consists of 1.4 million common shares. The holders of a 100% block of shares are Badalyan Vahe and Badalyan Vigen with equal 50% shares. The branch network of the company has 24 divisions, of which 11 are located in Yerevan and 13 in different regions of Armenia.