ArmInfo. IDBank completed the primary placement of the next tranche of registered coupon dollar bonds in the amount of $5 million, issued on July 24, 2023, ahead of schedule. This is noted in the message of IDBank, where it is noted that after listing on the Armenian Stock Exchange, the bonds of this issue (AMANLBB2LER8) will be quoted by the Marketmaker.
The annual interest rate is 4.25%, the maturity of the bonds is 27 months, the bonds will be paid quarterly. "Interest in IDBank bonds is growing. And since demand significantly exceeds supply, we will continue issuing bonds," noted IDBank CFO Arman Asatryan, adding that income from bonds is not taxable, which makes the instrument more attractive.
The message also mentions that the funds attracted by means of nominal bonds are considered to be guaranteed bank deposits and are guaranteed by the Deposit Guarantee Fund of Armenia. The bond prospectus was registered by the Central Bank of Armenia on October 7, 2022. The electronic version of the prospectus and the final terms of issue are available on the official website of IDBank.
IDBank has already issued 2 tranches of dollar bonds in 2023 with a total volume of 8 million dollars, in particular the above-mentioned tranche (in the amount of 5 million dollars) and the tranche issued in early August of this year in the amount of 3 million dollars. As of September 8, 2023, 8 bond issues of IDBank are listed on the Armenian Stock Exchange, of which 2 tranches are dram tranches with a total volume of 2 billion drams and another 6 tranches are dollar ones with a total volume of $25.132 million.
According to the Financial Rating of Armenian Banks as of June 30, 2023, prepared by ArmInfo IC, the volume of funds raised by IDBank from the placement of corporate bonds exceeds 13.7 billion drams ($35.5 million), having increased by 6.4% over the first half of this year. The bank doubled its income from securities transactions to 3.5 billion drams ($9 million), the share of which in the bank's interest income reaches 29%, and in total income - 17%. The bank also significantly increased investments in securities on a y-o-y terms - 2 times to 57 billion drams ($148 million).