ArmInfo.Armswissbank is planning a gradual placement of a large tranche of inscribed AMD coupon bonds totaling 25 billion in autumn. As the press service of the bank explained to ArmInfo, the bank's management is currently considering the probable date of the placement and the volume of the first tranche of this issue. The specific date and the proposed initial volume will be announced later as soon as the bank's management makes a specific decision.
According to the issue prospectus, registered with the Central Bank of Armenia and posted on the regulator's website, within the framework of this tranche (AMSWISB2FER5), a total of 500 thousand bonds with a par value of 50 thousand AMD will be issued. The coupon yield is set at 8.5% per annum. The maturity of the bonds of this tranche is set at 6 years. The frequency of coupon payments is provided every six months.
The decision on this planned issue was made by the Council of Armswissbank on July 14, 2020. At present, 11 issues of Armswissbank bonds are circulating on the AMX stock exchange - these are 3 AMD, 3 EUR and 5 USD. In particular, the total amount of AMD bonds is 18 billion drams, EUR 18 million and USD 41 million. USD bonds will be repaid in 2024, 2025 and 2026, EUR bonds - in 2023 and 2025, and AMD bonds - in 2021, 2023 and 2025 years.
Note that in June-July 2020, Armswissbank successfully placed the next tranches of AMD, USD and EUR bonds in the amount of AMD 10 billion, EUR 10 million and 5 million respectively, which were included in the listing in July (on the 10th and 22nd ). Since entering the corporate bond market, Armswissbank has issued 14 tranches of bonds to this day, of which USD 8, AMD 3 and EUR 3, as a result of the successful placement of which attracted AMD 18 billion, USD 51 million and EUR 18 million. Of these 14 issues, 3 (dollar) have already been redeemed. The nearest in maturity (June 15, 2021) is a four-year tranche of AMD bonds (volume - 2 billion, yield - 12.75%).
According to the Financial Rating of Banks of Armenia as of June 30, 2020, prepared by ArmInfo IC, Armswissbank is included in the TOP-3 in terms of the amount of funds raised from the placement of corporate bonds. As of the reporting date, this volume amounted to 47.8 billion drams or $ 99.1 million, having increased by 47.2% on an annualized basis, and only in the II quarter - by 40.2%. In the total volume of this indicator on the market, the share of Armswissbank reached about 14% as of the reporting date.
Let us remind that "Armswissbank" CJSC was established on October 7, 2004. As of July 1, 2020, 87.53% of the stake in Armswissbank is owned by HVS Holding LLC, managed by Vartan Sirmakes and registered in Luxembourg, and the remaining 12.47% are owned by FMTM Distribution Ltd, and Vartan Sirmakes is an indirect shareholder. Chrono Star International Participations Group Franck Muller S.a.r.l.