Tuesday, November 24 2015 16:17

On November 24, 2015 during a press conference held at NASDAQ OMX Armenia ARARATBANK announced the 10th issue of coupon bonds by the Company. ARARATBANK issued 80,000 coupon bonds with nominal value of USD 25, coupon rate of 7.00% and maturity of 2 years. David Haruthunyan, Deputy CEO, ARARATBANK, noted that the first placement of these bonds is scheduled from November 25 to December 1 , and the secondary placement of the bonds on NASDAQ OMX Armenia stock exchange will start on January 11, 2016 and finish on December 1, 2017. 

Haruthunyan emphasized that this issue differs by shorter terms of subscription, which is one week versus 2-3 weeks during previous issues, which is also determined by high market demand. "One week is quite enough for realization of the whole volume of bonds and the raised funds will be directed to the finance financing in economy, particularly financing of small and medium business projects", he explained.

Haruthunyan told ArmInfo's correspondent, that the 10th issue of bonds is the fifth monetary issue and the regular emission of USD bonds  he determined by the investors' maintaining high demand for the foreign exchange dealing. He clarified that ARARATBANK issued 80,000 coupon bonds with nominal value of USD 25. Coupon payments will be made quarterly. He noted that the bonds will be listed on NASDAQ OMX Armenia stock exchange and will have market-maker to ensure their liquidity, as well as will be allowed for conclusion of REPO agreements. Haruthunyan informed that during 2015 118 operations in total volume of 704 mln AMD have been conducted with ARARATBANK's bonds. 

Any individual or legal entity can purchase these bonds by referring to ARARATBANK's headquarter or branches. "Araratbank is the operator of the Central Depository of Armenia, and this allows the bank to open securities accounts for clients and make bond transactions in a few minutes," he noted. 
To recall, the placement of the first issue of ARARATBANK undocumentary coupon corporate bonds worth 250 mln AMD with quarterly coupon payment, annual yield of 8%, circulation period of 1 year, took place on 3 May 2007. The bonds of the first issue were redeemed on 12 May 2008. Throughout the whole period of circulation of the first- issue bonds at NASDAQ OMX Armenia, transactions amounted to 450 mln AMD (94 transactions).  The placement of the second issue of ARARATBANK undocumentary corporate bonds worth 400 mln AMD, with annual yield of 9% and circulation period of 1,5 years, took place from 9 till 24 June 2008. The period of redemption of the second issue expires on December 24, 2009. From July 2008 till 24 August 2009 inclusive 45 transactions worth 267 mln AMD were carried out with the second-issue bonds at the stock exchange. These securities are listed at Bbond by NASDAQ OMX Armenia.  The placement of the third issue was worth 250 mln USD with 10% annual yield and 1.5 years of maturity. The bank carried out the forth issue in July 2011. The amount totaled 250 mln with 12% yield.  In 2012 ARARATBANK was the pathbreaking one to issue currency bonds.  This was the fifth issue with the amount of 1 mln USD and 9% yield.  The sixth issue took place in 2013, the currency bonds totaled 1 mln USD with 8.5% yield and 3 years of maturity. The seventh issue took place in 2013 and comprised AMD bonds with the amount of 400 mln AMD, 13% yield and 3 years of maturity. The eighth issue was 1 mln USD-worth, with 8% yield and 4 years of maturity. 

To note, according to the Financial Rating of Armenian Banks prepared by ArmInfo News Agency as of October 1, 2015 ARARATBANK's assets amounted to 125.8 bln AMD with 11.3% yoy growth. The share of investments in securities totaled more than 11.4bln AMD or 9%.  The liabilities made up 103.4 bln AMD by 13.6% yoy growth, the total capital - by 1.7% to 22.3bln AMD. The net profit of the bank totaled 888.3 mln AMD with 57.6% yoy fall in 2015. European Bank for Reconstruction and Development holds 25%+1 of the bank's shares, 64.25% of the shares belong to Flash petrol trader, and less than 10% to RURAL IMPULSE FUND II