ArmInfo. On November 1, Converse Bank began the initial placement of dram and dollar bonds in the amount of 5 billion drams and $5 million. The initial placement is scheduled to be completed by February 3, 2025. This is noted in the Bank's statement.
This message notes that this is the second placement of the Bank's bonds this year. The first placement of bonds in the amount of 5 billion drams and $10 million was completed ahead of schedule: the dram bonds were purchased within days, and the dollar bonds - in 2 months. The demand for the Bank's corporate bonds demonstrates their competitiveness and the interest in alternative investment opportunities.
Within the framework of the AMD tranche (AMCOVSB2KER6), the annual coupon yield for dram bonds is set at 9.75%, and for dollar bonds (AMCOVSB2LER4) - at 4.5% per annum. In both cases, the frequency of coupon payment is provided for once every six months. 100,000 bonds were issued as part of the dram and dollar issues, each with a nominal value of 50,000 drams and 100 dollars, respectively. The maturity date of the dram bonds is set on November 1, 2026, and the dollar bonds - on November 1, 2027.
The bonds will be placed both through the Converse Mobile platform and through the Bank's branch network. After the completion of the process, they will be listed on the Armenia Stock Exchange. Detailed information about the issue and placement, as well the final conditions of this issue is posted on the Converse Bank website at the following link: https://conversebank.am/hy/2024issue/. The terms of the AMD tranche can be found at the link https://conversebank.am/hy/24-1/ , and the dollar tranche - at the link https://conversebank.am/hy/24-eng/ .
Note that the bonds are guaranteed by the Deposit Guarantee Fund of Armenia, and the funds raised through bonds listed before December 31, 2024 and quoted on the Armenian Stock Exchange are not taxed. According to the Financial Rating of Armenian Banks as of January 1, 2024, prepared by ArmInfo IC, Converse Bank raised funds from the placement of its own bonds in the amount of 20.4 billion drams ($50.3 million). In 2023, the bank increased it by almost 40%.
