ArmInfo. ACBA Bank has started the primary offering of USD and AMD coupon non- documentary bonds in the amount of USD 5 million and AMD 3 billion. As noted in the message of the Bank, the primary offering of these issues started on March 1, and completion is scheduled until May 31 inclusive.
Within the AMD tranche (AMACBAB2AER7), 30,000 bonds were issued with a nominal value of AMD 100,000 each, with a coupon yield of 11.5% per annum. As part of the USD tranche (AMACBAB2BER5), 50,000 bonds were issued, with a nominal value of USD 100 each, with a coupon yield of 5% per annum. The term of circulation of both AMD and USD bonds is set at 36 months. Coupon payments within both tranches are provided for once every six months. Full redemption of the bonds of the abovementiond two issues will take place on March 1, 2026.
Those wishing to purchase bonds of the abovementioned issues should fill out an application and submit it to ACBA Bank. Sample applications for the purchase of dram and dollar bonds, respectively, for individuals and legal entities are posted on the Bank's website under the relevant links: https://www.acba.am/uploaded/dramayin-hayt-fizikakan-andz.pdf , https://www.acba.am/uploaded/dolarayin-hayt-fizikakan-andz.pdf , https://www.acba.am/uploaded/dramayin-hayt-irav-andz.pdf, https://www.acba.am/uploaded/dolarayin-hayt-irav-andz.pdf .
According to the prospectus, the decision to issue and place these tranches was made by the Board of ACBA Bank on August 19, 2022, and the decision of the Bank's Management Board followed on November 1, 2022.
It should be noted that in the annual competition held by the Armenian Stock Exchange and the Central Depository among the participants of the stock market, the results of which were summed up in August 2022, ACBA Bank OJSC, based on the activity and initiative shown during 2021, became the winner in a new nomination - " Special Award", distinguished by active integration and use of innovative methods in the capital market.
According to the Financial Rating of Banks of Armenia as of January 1, 2023, prepared by ArmInfo, ACBA Bank raised funds in the amount of 5.4 billion drams ($13.7 million) from the placement of its own bonds during the reporting year. In y-o-y terms, ACBA Bank ensured the growth of this indicator by 56%.
ACBA Bank was founded in 1996 and is currently one of the largest banks in Armenia. The bank is in the TOP-5 in terms of key balance sheet indicators - assets, credit investments (both corporate and retail), liabilities (both term deposits and demand liabilities), total capital, net profit. ACBA Bank is the undisputed leader in lending to the agricultural sector, with a share increased to 50.3% in the total market volume. In terms of coverage of the branch network, the Bank is also the leader, having 63 branches, of which 44 are located in the regions of the country and 19 in Yerevan. In 2021, the Bank carried out a large issue of shares, as a result of which it changed its status from CJSC to OJSC, and became the leader in terms of the number of shareholders, whose number reached 6376 as of December 31, 2022. The share of participation of these shareholders in the capital of the Bank presented as follows: "ACBA Federation" CJSC - 83.84%, "Sacam International" SJSC (a member of the Credit Agricole banking group) - 4.55%, and the remaining 11.65% belong to legal entities and individuals, including employees of ACBA Federation, ACBA Leasing and ACBA Bank.
