YEREVAN, November 6. /ARKA/. Araratbank OJSC announced Tuesday on opening first trades of its currency bonds on NASDAQ OMX Armenia stock exchange.

David Harutyunian, the deputy chief executive officer of Araratbank, said some 40,000 bonds of three years maturity had been issued, with a face value of 25 dollars, each at total value of 1 million dollars with a 9% annual yield.

Coupon payments will be proceeded quarterly.

Over 160 investors are said to participate in the bond placement, and most of them are said to be individuals.

It is the fifth time, the bank has issued and placed bonds. It was the first time, however, when the bank has auctioned its currency bonds.

The bonds were listed at NASDAQ OMX Armenia. The bank reached an agreement with Renesa investment company over fulfilling functions of a market-maker. The issued bonds will be continuously quoted by this company.

The bonds will be in a free circulation enabling anyone interested to buy them via investment companies, which are stock market members.

According to Harutyunyan, investors showed interest in the fifth emission of the bonds, as the placement results imply. Particularly, the bond demand exceeded supply by 25%, and the subscription ended two days prior to the deadline.

“It inspires that in 2013 the bank will appear with new proposals,” Harutyunyan said.
On his side, NASDAQ OMX Armenia head Konstantin Saroyan welcomed this initiative by Araratbank.

“We expect new placements. Araratbank will be a locomotive in this process, and we hope to see the equity market to develop in higher rates,” Saroyan said.

Araratbank, the heir of Armsvyaz bank, was established in 1991. On 31 October 1996 the bank received a banking license №4. On 30 January 2009 Araratbank joined NASDAQ OMX Armenia stock exchange.

European Bank for Reconstruction and Development holds 25% of the bank’s shares, 64.18% of the shares belong to Barsegh Beglaryan, owner of Flash petrol trader, and 10% are held by Incofin Investment Management Belgian company.—0-