YEREVAN, May 21. / ARKA /. Araratbank will place $1 million worth USD-denominated coupon bonds, the bank’s deputy executive director, David Harutyunyan, said today. He said 40,000 bonds will be placed through subscription from May 23 to June 13. The face value of a bond is $25, the annual interest rate is 8.5% and the maturity period is 36-months. Payments will be made quarterly.

Harutyunyan said when the bonds are issued they will be listed at NASDAQ OMX Armenia stock exchange. The bank has chosen Renesa investment company to act as a market maker. He said the raised funds will be used to credit the economy.

It will be the second issue of USD-denominated bonds by Araratbank. The first was in 2012 November when it issued 40 thousand bonds worth $1 million with a face value of $25 each , annual yield of 9% and three-year maturity.

He said the previous placement caused a great demand in the market, attracting more than 160 investors, most of whom were individuals. The previous five issues were held in 2007, 2008, 2009, 2011 and 2012. He said the turnover in the secondary market amounted to more than 980 million drams and $450,000 respectively.

NASDAQ OMX Armenia stock exchange director Konstantin Saroyan said that all transactions with Araratbank’s bonds were simplified to create favorable conditions for investors in another step to boost Armenia’s securities market.

Some 74.18 percent in Araratbank is owned by Barsegh Beglarian, the owner of Flash oil trader, 25% is owned by EBRD. ($ 1 - 417, 16 drams). -0-