Inecobank announces placement of USD-denominated bonds to the tune of $5 million

08.06.2018 20:04
Inecobank announces placement of USD-denominated bonds to the tune of $5 million

YEREVAN, June 8. /ARKA/. Inecobank announced today the issue of the first tranche of USD-denominated registered coupon bonds to the tune of $5 million. The Yerevan-based bank said in a press release that the placement of bonds will be conducted on June 11 from 10:00 to 16:30 via open subscription.

Inecobank Financial Director Hayk Voskanyan said the bonds can be offered for sale at the secondary market at any time, while maintaining the current yield, in contrast to deposits, the early withdrawal of which leads to the recalculation of the accrued interest.

"Investors can sell the bonds at current market price to a market maker before their redemption. A market maker is a financial organization that undertakes to ensure purchase and sale of bonds throughout their entire circulation," he said.

He noted also that customers can not worry about the safety of their investment, since from the taxation point of view bonds are no different from deposits.

According to him, as part of the first tranche, the bank will issue 50,000 bonds with the face value of $100 each. The maturity of the bonds is 3 years, the annual yield is 5.25%, and the periodicity of the coupon payment is half a year.

"This is the first step of Inecobank in the capital market, and in future the bank will be even more active. According to the prospectus, Inecobank plans to issue $15 million and 2.5 billion drams worth bonds respectively,’ the financial director said.

According to the press release, after the bond placement is completed, the bonds will be listed on the corporate bonds platform of NASDAQ OMX Armenia stock exchange. The issue prospectus and the terms of the issue are posted on the official website of the bank at Investors can obtain paper version by visiting the head office of the bank at 17, Tumanyan Street, Yerevan.

Inecobank CJSC, being one of the leading banks in the South Caucasus, provides commercial and digital banking services to individuals, SMEs and large organizations. For about 22 years, the bank has been providing high-quality banking services in Armenia, serving more than 400,000 customers, including 100,000 digitally. Throughout its activities, the bank has developed and provided leading banking digital solutions, with the goal of introducing completely new banking services.

Particularly, in 2009, the bank was the first in Armenia to have introduced the fully automated digital program "Installments on Spot", which reduced the installment purchase of goods from 3-4 days to several minutes.

In 2012, thanks to the InecoOnline system, the bank was one of the first banks to offer 24/7 mode transactions. In 2014, it introduced the mobile application InecoMobile, which, thanks to ease of use, enabled Inecobank to rank today with the banks that have financial applications with the largest number of users.

In 2017, the bank was the first to introduce a fully automated lending process through its online and mobile applications, as a result of which loans are provided to customers in 24/7 mode.

Inecobank CJSC was registered on February 7, 1996. This is the first bank in Armenia, which introduced loan installments. The bank’s shareholders are A. Baloyan - 30%, K. Safaryan - 25.92%, EBRD - 22.7%, and agRIF Coopeartief U.A - 10.01%. ($ 1 - 483.49 drams) -0-

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