ArmInfo.On September 22 Armswissbank will resume an additional issue of registered coupon euro bonds in the amount of 5 million euros. As the press service of the bank explained, this issue is provided in the program prospectus of the issue, registered by the Central Bank of Armenia on May 15 this year. The initial placement of this tranche will start on September 22, and it is planned to complete it on October 22.
According to the source, this issue includes 50 thousand bonds with a par value of 100 euros. The coupon yield is set at 3.5% per annum. The frequency of coupon payments is once every six months. The maturity of these bonds is set at 5 years.
The bonds will be placed through a public offering. Applications will be accepted from September 22 to October 22 this year.
The electronic version of the issue prospectus and the main terms of placement are presented on the official website of Armswissbank - www.armswissbank.am. Those wishing to take part in the placement can contact the bank by phone numbers: (+37460) 757001, (+37411) 757001.
To note, within the framework of the same programmed issue prospectus from June 1 to July 1, the placement of a similar issue of euro bonds was successfully completed: in volume - 5 million euros, coupon yield - 3.5% per annum (with a frequency of coupon payments every six months, circulation period - 5 years. In parallel with this issue, the bank placed one tranche of USD bonds in the amount of 10 million and AMD in the amount of 10 billion. In particular, on June 1 the entire volume of the AMD bond tranche was successfully placed on the AMX Armenian Stock Exchange, and on June 3 - earlier of the stipulated term - placement of the tranche of dollar bonds by open subscription has been completed. According to the AMX Armenian Stock Exchange, as of September 14, 2020, 11 tranches of Armswissbank bonds are quoted at the exchange - 5 dollars, 3 euros and 3 drams each. In particular, the total volume of dollar issues is $ 41 million, euro - 18 million euros, and dram - 18 billion drams. The coupon yield on dollar issues decreased from the initial 6.5-6.75% to 6%, euro - from 4-5% to 3.5%, dram - from 12.75-11.5% to 9%. The maturity of quoted dollar bond issues is 6 and 7 years, euro - 4-6 years, dram - 4-5 years. The nearest repayment will take place on June 15, 2021 (AMD tranche), and later in 2023- 2026. 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 in the Q2 alone - by 40.2%. In the total volume of this indicator on the market, the share of Armswissbank reached almost 14% as of the reporting date. To recall, "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 Sarl
