Monday, April 15 2019 16:18

ArmInfo. Converse Bank announced the next placement of AMD bonds in the amount of 1 billion drams and $ 10 million in dollars. These will be the 7th and 8th issues of  Converse Bank's bonds, and among the dollar tranches it is the 4th  and dram bonds- 3rd.The press service of the bank told ArmInfo that  the yield on the coupon of AMD bonds of the new issue is 9.75% per  annum and dollar ones - 5.5% per annum. The maturity of these two  issues is 36 months. 

Coupon payments are provided semi-annually. Completion of the primary  placement of bonds of these issues is expected in September, after  which they will be included in the listing of corporate bonds of the  Armenian stock exchange AMX for turnover in the secondary  market."Since 2017, Converse Bank has been regularly issuing bonds,  being today one of the market leaders. In general, over the past 3  years bonds have been placed for an amount equivalent to 17 billion  drams in various currencies: in drams, dollars and euros. Our bonds,  are in great demand both among institutional investors and among  individual clients, and therefore, to meet the requirements of the  market, bond issues are permanent, "said Hrant Hakobyan, Chief  Financial Officer of Converse Bank.

According to him, bonds are a very attractive and flexible tool for  savings. Usually they have a much higher yield than deposits. In  addition, at any time bonds may be fully or partially sold with the  interest accrued.Prospectuses of bond issues of these issues are  posted on Converse Bank's website at:   https://conversebank.am/hy/2019issue/According to the latest data, 6  issues of Converse Bank bonds are listed on the Armenian stock  exchange AMX. These are the third dollar tranches in the total amount  of $ 20 million, 2 drams in the total amount of 4 billion drams, and  one euro in the amount of 5 million euros. All of these issues are on  the main Abond list. Coupon payments for these issues are made every  six months.  The yield of dollar-denominated issues since the first  tranche (from May 5, 2017) to the current placement (April 2019)  decreased from 5.75% to 5.5%, and dram ones - from August 2017 10.5%  to the current 9.75%. Of the already quoted issues of Converse Bank's  bonds in 2019, 3 will be redeemed: two dollars for $ 6 million and $  4 million - on May 5 and October 16, respectively (yield 5.75% and  5.25% respectively), and one dram per 1 billion drams - on August 3  (yield of 10.5%). 

The redemption of the remaining three issues (dram, dollar and euro)  will take place in 2021 - April 26.According to the data of the  Financial Rating of Banks of Armenia as of January 1, 2019, prepared  by the ArmInfo IC, Converse Bank attracted funds of 16.7 billion  drams ($ 34.4 million) from the placement of its own bonds, ensuring  an annual growth of 2.8 times. In terms of the amount of borrowings  from the placement of its own bonds, Converse Bank occupies the 4th  position, in terms of the annual growth of this indicator - the 1st  position. Assets of Converse Bank as of this date amounted to 281.1  billion drams, liabilities -242.03 billion drams, total capital -  39.1 billion drams. 2018 Converse Bank completed with a net profit of  4.9 billion drams, exceeding the level of a year ago by 37.7%.It  should be noted that Converse Bank has been operating in the Armenian  market since September 1996. 

As of January 1, 2019, the Bank's shareholders are Advanced Global  Investments LLc (led by Eduardo Ernekian) - 80.94%, HayPost Trust  Management B.V. - 14.06%, Ecumiadzin Cathedral - 5%.