ArmInfo. In the first ten days of September, after the dollar bonds Unibank put up for on sale AMD bonds. This is evidenced by the issue prospectus posted on the RA Central Bank's website.
Thus, on September 10, Unibank started the primary placement of the next dram tranche of coupon non- documentary bonds in the amount of 500 million with a coupon yield of 10.5%, with a quarterly periodicity of payments and a circulation period of 27 months. In particular, this issue consists of 50 thousand bonds with a nominal value of 10 thousand AMD. Completion of the initial placement of this tranche is scheduled for October 5 this year.
Prior to that, on September 1, Unibank put up for sale the next tranche of three-year dollar bonds in the amount of $ 5 million at a yield of 5.25%, planning to complete the initial placement on October 7 this year.
According to AMX, as of September 1, there are 7 tranches of Unibank bonds in circulation on the Armenian stock exchange - 5 USD ones in a total volume of $ 17.1 million with a yield of 5-5.75%, and 2 AMD tranches in a total volume of $ 1 billion with a 10% yield. One dollar and two dram tranches will be repaid in September-November 2020, and the remaining four tranches - in 2021-2022. According to the Financial Rating of Banks of Armenia prepared by ArmInfo IC, as of June 30, 2020, Unibank reduced loan investments in the first half of the year by 1.4%, with a weak annual growth by 3% - to $ 354 million. Moreover, the decline in corporate lending was accompanied by the continued growth in retail. In the bank's loan portfolio, the share of overdue loans exceeded 21% (with a significant dominance of the high-risk group), having surpassed the upper threshold of the internationally acceptable critical limit (10-15%). At the same time, the recorded modest decline in the volume of overdue loans, judging by the sagging profits, indicates significant write-offs from the balance of toxic loans. Income from lending declined, and it was more noticeable in the Q2 than in a year.
In the structure of the bank's liabilities, the y-o-y stagnation of time deposits was accompanied by a subsidence of on-demand deposits, and in the first half of the year alone, in both cases, a decline of 6% and 38% was recorded, which mainly occurred in the second quarter (6% and 23%, respectively). And the negative trend of these indicators was due to the reduction in time deposits of individuals and demand deposits of legal entities, the latter being more significant (by 31% in the Q2). At the same time, the bank significantly increased the volume of funds attracted under international programs (in the first half of this year, 4-fold: 2-fold quarterly). The volume of funds attracted by Unibank from the placement of corporate bonds since the Q2 of this year went into recession. And income from securities transactions has been in decline for both the year and the quarter. In terms of the normative total capital, by July 1 of this year Unibank registered decline to 30.6 billion drams, approaching the minimum required 30 billion. The total capital adequacy in y-o-y terms decreased from 15.1% to 14.7% (against the minimum required 12%). The level of liquidity also decreased: total - to 22.6%, and current - to 81% (against the minimum required 15% and 60%, respectively). The maximum exposure per borrower is also close to the normative threshold - it is 19.3% with the required maximum of 20%.
