Araratbank underwrites mortgage bonds of First Mortgage Company

12.12.2017 18:44
Araratbank underwrites mortgage bonds of First Mortgage Company

YEREVAN, December 12. /ARKA/. Armenian Araratbank has underwritten today covered mortgage bonds issued earlier by the First Mortgage Company to the tune of 100 million drams and USD 500,000 through Nasdaq OMX Armenia stock exchange.

It said the face value of dram-denominated bonds is 10,000 drams and the face value of USD-denominated bonds is USD 25. The maturity period of both bonds is 24 months. Coupon payments are due every three months. The bonds are covered with 153 million drams outstanding balance and 365 million drams outstanding balance respectively as of November 1, 2017.

The bank said this is a new tool for the Armenian capital market. It said also that the investments in bonds are covered not only by the obligations of the issuer, but also by a pool of mortgages originated by the issuer, which together with the bond prospectus were registered at the Central bank of Armenia. The bonds were issued in accordance with the Law on Covered Mortgage Bonds.

David Atanessian, the CEO of First Mortgage Company said the new financial tool will boost the development of both capital and mortgage markets of Armenia. He said the company has too included this tool into its fund-raising plans for the future. The new funds will be used to underwrite new mortgages, he added.

Araratbank CEO Davit Harutyunyan said the bank has always been in the front rows to support the development of the Armenian capital market. ‘We are pleased to announce that preceded by the Black Sea Trade and Development Bank and the Finca credit organization, the First Mortgage Company is the third issuer we are introducing in 2017 alone.”

Edgar Evoyan, Araratbank investment banking director, said this issuance tested in practice the law on Covered Mortgage Bonds. “I am sure that the new edition of the law will greatly enhance the development of this tool,’ he said.

The First Mortgage Company is the first private residential mortgage finance company established in Armenia in 2004.

Araratbank is owned by Flash oil trader (64.25%), EBRD (25%) and RURAL IMPULSE FUND II SA SICAV SIF (10%). ($1 - 482.36 drams) -0-


Partners news

Related Posts