Araratbank conducts 11th issuance of USD-denominated bonds

03.06.2016 17:13
Araratbank conducts 11th issuance of USD-denominated bonds

YEREVAN, June 3. /ARKA/. Araratbank, one of the most active participants of Armenia’s securities market, has conducted the 11th issuance  of USD-denominated bonds,  saying the move was prompted by successful placement of previously issued bonds.

Speaking to journalists today, Araratbank deputy CEO Davit Harutyunyan said  the bank has issued 40,000 nominal, non-documentaries, coupon bonds with the par value of $25, 36- month maturity period and  7% annual interest rate. The subscription to the bonds will take place from 6th to 17th of June.

He said prompted by market trends the rate on the latest issuance is lower,  when compared with previous issuances.

According to Harutyunyan, to buy bonds natural or legal persons should apply to any branch or the head office of the bank.

He added that the bonds enjoy all the benefits of fixed-term deposits and are secured by the Deposit Insurance Fund.

The bonds will be listed at NASDAQ OMX Armenia stock exchange and market participants will be given the opportunity to exercise,  in addition to the purchase and sale of the  bonds,  to conclude also  repo transactions. The coupon payments will be made quarterly.

Bonds of five issuance of Araratbank are being traded at NASDAQ OMX Armenia stock exchange, including four USD-denominated issuances and one dram-denominated issuance . In 2015, $1 million worth transactions with Araratbank bonds were effected in addition to 219 million drams worth transactions in national currency.

According to Harutyunyan, last year Araratbank’s bonds accounted for 58% of all bonds traded at the stock exchange, falling l to  2% this year.

"This means that almost every second transaction at  the stock exchange is made  with Araratbank bonds, which is the result of our consistent performance and high-level  liquidity,"  he said.
Araratbank founded in 1991 is owned by Flash company ( 64.25%),  EBRR (25%) and  RURAL IMPULSE FUND II SA SICAV SIF (10%). Araratbank joined NASDAQ OMX Armenia in 2009 January.

In the first quarter of 2016, the bank's assets stood at 130.6 billion drams (a decline of 1% since the beginning of the year;  liabilities stood at 107.9 billion drams (a decline of  1.45%), total capital  was worth  22.7 billion drams (up 1%) and  profit for the first quarter  was  176.7 million drams. ($ 1 - 477.99 drams). -0-

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