Converse bank announces issuance of corporate bonds

05.05.2017 16:40
Converse bank announces issuance of corporate bonds

YEREVAN, May 5, /ARKA/. Converse Bank CJSC announced today its first tranche of corporate bonds issuance. The bonds will be listed on NADAQ OMX Armenia OJSC stock exchange and will be traded on the secondary market. The total value of the issue will include AMD 1 billion and USD 10 million, the bank said in a press release.

The total value of the first tranche is USD 6 million. The face value of each bond is USD 100, the maturity period is 24 months with semiannual coupon payment frequency. The coupon rate is 5.75% per annum.

“With this issuance, Converse Bank will diversify its liabilities portfolio and will direct the attracted funds to the financing of different investment project in different sectors of the economy,” commented Arthur Hakobyan, Converse Bank’s CEO.

“Bonds are a wildly used investment instruments and have an essential advantage compared to traditional time deposits. They can be sold at any point in whole or in part, without losing the accrued interests,” explained Grant Akopian, Converse Bank’s CFO.

Bonds are guaranteed by the Deposit Guarantee Fund to the amount of guaranteed deposits. Capital Investments CJSC will be the registrar and the market maker for the bonds. Converse Bank CJSC is part of the Group owned by the Argentinean-Armenian businessman Eduardo Eurnekian, and offers the whole range of banking services, among others, lending, deposits, debit and credit cards, investment and custodian services, remote banking and online payments.

Its shareholders are Advanced Global Investments LLC (80.94%), Haypost Trust Management B.V. (14.06%) and the Armenian Apostolic Church (5%). As of 31.03.2017, the bank’s assets stood at AMD 203,281,106, 000 the liabilities at AMD 170,223,811,000 and the total capital made up AMD 33,057,295,000. -0-

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