Converse bank commences placing of AMD bonds

03.08.2017 18:34
Converse bank commences placing of AMD bonds

YEREVAN, August 3. /ARKA/. The Yerevan-based Converse Bank said today it started placing corporate AMD bonds issued by it. It said the placement will be followed by listing of the bonds at NASDAQ OMX Armenia corporate bonds’ platform for trading on the secondary market.

The total value of the issue is AMD 1 billion. The face value of one bond is AMD 100,000, the maturity period is 24 months with semi-annual coupon payment frequency. The coupon rate is 10.5% per annum, and the effective rate is 10.78 %.

The minimum number of bonds to be purchased is 15, which is AMD 1,500,000 in monetary terms.
“This is already the second placement this year. The first was made in USD. The Bank, adhering to its policy of offering its customers a wider range of banking products, this time offers AMD bonds, which are attractive in financial market due to growing interest in them”, - said Grant Akopian, Financial Director of Converse Bank, adding that the attracted funds would be used for lending to various sectors of economy.

According to Armenia’s Law on “Guaranteeing of Remuneration Of Bank Deposits Of Physical Entities,” the funds attracted via nominal coupon bonds issued by the Bank are considered as guaranteed banking deposit, and are guaranteed by the Deposit Insurance Fund of Armenia.

Capital Investments CJSC will be the registrar and the market maker for the issued bonds. Converse Bank CJSC’s shareholders are “Advanced Global Investments” LLC (80,94%), HayPost Trust Management B.V. Company (14.06%), the final beneficiary of which is Eduardo Eurnekian, Argentine businessman of Armenian origin, and the Armenian Apostolic Church (5%).

The Bank provides the whole range of banking services: lending, deposits, payment cards, investment and depositary services, remote services, online payments, etc. As of 01.07.2017, the Bank’s assets stood at o AMD 217,338,330 thousand, the liabilities – at AMD 183,270,439 thousand, and the total capital – at AMD 34,067,891 thousand. -0-


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