ArmInfo. On November 22, Converse Bank will start the primary placement of the next issue of USD and AMD bonds in the amount of AMD 3 billion and USD 10 million.
Within the AMD tranche (AMCOVSB2GER4) 60,000 bonds with a par value of AMD 50,000 each will be issued. The coupon yield is 10.5%. Full redemption of AMD bonds of this issue is scheduled for November 22, 2024.
As part of the USD tranche (AMCOVSB2HER2), 100,000 bonds with a par value of $100 each will be issued. The coupon yield is 3.75%. The full redemption of the USD bonds of this issue is scheduled for November 22, 2025. Coupon payments on both AMD and USD tranches will be made every six months.
According to the source,the decision to issue and place these tranches was made by the Board of Converse Bank on March 24, 2022, and the decision of the Board of the bank followed on November 9, 2022.
It should be reminded that in April 2022, Converse Bank also issued one tranche of AMD and USD bonds in the amount of 2 billion drams and $10 million, with a coupon yield of 10% and 4%, respectively. Payments on the coupons of these issues are made every six months. It was planned to complete the initial placement of these issues on September 30, but it was possible fully place them two months ahead of schedule - by July 26. Full redemption of the bonds of these two issues is scheduled AMD - on April 18, 2024, USD - on April 18, 2025. Later, in October 2022, Converse Bank redeemed one tranche of USD and AMD bonds in the amount of $5 million and AMD 1 billion, making coupon payments for a total of AMD 100 million. These two tranches of bonds were placed by the bank in 2019 under the following conditions: the annual yield on AMD bonds was 9.5%, on USD bonds - 5.25%; the term of circulation in both cases was set at 36 months; Coupon payments were made every six months. At the same time, the Bank reported that corporate bonds issued by it are one of the most demanded banking products. Since 2017, Converse Bank has issued bonds with a total volume of 11 billion drams, $55 million and 5 million euros, of which, as of the indicated date, bonds worth 5 billion drams and $20 million were successfully traded on the Armenian Stock Exchange. And the income received by buyers from bonds amounted to as of 10/18/2022 about 1.8 billion drams, about $5.1 million and almost 598 thousand euros. In the same message, the Bank noted that from now on it will carry out regular emissions in order to meet the investment needs of clients in financial instruments.
According to the Financial Rating of Armenian Banks as of January 1, 2021, prepared by ArmInfo IC, Converse Bank raised funds in the amount of 21.5 billion drams ($41.2 million) from the placement of its own bonds. Converse Bank holds the 4th position in terms of the volume of attracted funds from the placement of its own bonds. It should be noted that Converse Bank has been operating in the Armenian market since September 1996. As of January 1, 2021, the Bank's shareholders are Advanced Global Investments LLc (hand of Eduardo Ernekyan) - 72.89%, HayPost Trust Management B. V.-22.11%, and the Cathedral of the First Cathedral of Etchmiadzin - 5%.
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