Araratbank may embark on IPO in 2017

22.12.2016 15:12
Araratbank may embark on IPO in 2017

YEREVAN, December 22. /ARKA/. Araratbank remains steadfast in its intention to enter IPO market, Ashot Osipayn, Araratbank executive director, told journalists on Wednesday.
He said that the bank is considering room for placing bonds at one of international markets and is moving toward this goal consistently.

“But we don’t consider IPO as remedy – it is relevant only with existence of particular projects, and its terms depend on our objectives,” Osipyan said adding that this is a quite expensive process – the bank will have to spend around $1 million regardless of the amount of the placement.

Although Araratbank can attract cheap financial resources from abroad, but as market leader, it will continue placing bonds at the domestic market.

“Five tranches for five years are presented at the market now, and in 2016, we placed around $2 million in two tranches and also AMD 500 million,” the banker said. “These amounts are modest, since the nominal value of one bond is just $25. We pay more attention to volume.”

In his words, the bank is planning to embark on another bond placement in 2017, maybe in larger amounts.

Araratbank has placed 13 issues of coupon bonds, of which three in 2016 alone.

Araratbank, the heir of Armsvyaz bank, was established in 1991.

Flash petrol trader holds 64.25% of the bank’s shares, 25% of the shares belong to the European Bank for Reconstruction and Development and 10% to RURAL IMPULSE FUND II SA SICAV SIF.

Araratbank became a NASDAQ OMX Armenia stock exchange participant on January 30, 2009.

The bank’s assets totaled AMD 137.5 billion in the third quarter of this year (4.16% growth) and liabilities AMD 113.4 billion (3.53% growth).

It capital amounted to AMD 24 billion (7.2% growth). ($1 – AMD 480.68). --0---

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