Saturday, June 13 2015 07:40

ARARATBANK is intedning to carry out the ninth issue of dollar bonds with the amount of 2 mln USD and 7.25% annual yield. The maturity of bonds is 3 years. 

Deputy Chairman of the Executive Board and Deputy CEO of ARARATBANK OJSC David Harutyunyan has explained during the June 12 press conference that 80 thsd of non-documentary bonds with 25 USD nominal worth each will be issued within this emission. Coupon payments are to be made once per quarter. The IPO of these bonds is scheduled for June 1-26, 2015. The bank's ninth issue of corporate bonds is the fourth in respect of dollar issues. The bonds will be listed at NASDAQ OMX Armenia and will have market-maker to ensure their liquidity in the market and will be allowed for conclusion of REPO agreements. The issuer will become the underwriter, while as before "Renesa" Investment Company will take the responsibility of the market-maker. The secondary placement of the bonds will take place from July 27, 2015 to June 26, 2018. Placement of the bonds will take place from June 15 till June 26, 2015 through subscription. Any individual or legal entity can purchase these bonds by referring to ARARATBANK's headquarter or branches. 

David Harutyunyan informed that 500 mln AMD-worth 188 transactions were consummated throughout 2014. In response to ArmInfo journalist's question, the deputy CEO said that funds derived from the ninth issue will be directed towards business loans, mainly to fund small and middle-sized business.  

The bank has been reducing the yield with every issue. This speaks for the fact that investors have shown both interest and trust in respect of the bank's bonds and the bank itself. The bank has maintained the second place regarding the absolute volume of corporate bonds and their share in the market. As of March 31, 2015 the figures made 14.1 bln AMD or 14.71%.    

To note, 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. The fifth, sixth and seventh issues are currently being listed on the stock.      

To note, according to the Financial Rating of Armenian Banks prepared by ArmInfo News Agency as of late 2014 ARARATBANK's assets amounted to 138.8 bln AMD with 10% growth. The share of investments in securities totaled more than 15 bln AMD or 11% with 16% yoy growth.  The liabilities increased to 117 bln AMD by 10.8%, the total capital - by 11% to 21.8 bln AMD. The net profit of the bank totaled 2.9 bln AMD with 4.4% yoy fall in 2014. The bank summed up 2014 with 2.35% ROA and 14.18% ROE and found a place in TOP-5.  As of April 1, 2015 the bank assets totaled 132.3 bln AMD with 0.4% yoy growth.  At the end of Q1 2015 the share of investments into securities totaled 13% or 17 bln AMD with 30% yoy growth, 12% of which was provided in the quarter. As of April 1,2015 the liabilities of the bank totaled 110.5 bln AMD with 0.6% yoy fall, the total capital - 21.8 bln AMD with 6% yoy growth. The bank finished Q1 2015 with 405.7 mln AMD net profit - 63.2% yoy fall and almost 2-fold Q growth. as of ROA and ROE in Q1 2015 the bank appeared in the leading ten - 1.19% and 7.72% respectively.  According to the recent data, 64.24% belong to the "Flash" company, 25% +1stock - EBRD; 10% - Rural Impulse Fund II. (On 31 March 2015, the USD/AMD exchange rate was 471.13 AMD/$).