ArmInfo.In June 2019, Ardshinbank began issuing its own bonds in Armenian drams and US dollars. The AMD bonds issue boos will be open until September 1, while USD bonds issue books - until August 2.
The total amount of dollar-denominated bonds is $ 10 million, including 100,000 registered uncertified coupon bonds with a nominal value of $ 100. Annual coupon income will be 5.5%, circulation period - 27 months. Coupon payments will be made quarterly.
The total volume of AMD bonds is 1.5 billion drams, including 150,000 registered uncertified coupon bonds with a nominal value of 10,000 drams. Annual coupon income will be 10.5%, circulation period - 36 months. Coupon is paid quarterly.
After the completion of the issue, the bank's bonds will be listed on the NASDAQ OMX Armenia Stock Exchange and will be traded in the market by market maker. Both individuals and legal entities can receive bonds by contacting the head office or any branch of Ardshinbank.
According to the Law of the Republic of Armenia "On Guaranteeing Bank Deposits of Individuals", the funds attracted by the Bank's nominal bonds are considered as guaranteed bank deposits and are guaranteed by the Deposit Guarantee Fund.
The prospectus for placement of bonds, approved by the Central Bank of Armenia on May 17, 2019, and the conditions can be found at the following links: ttps://bit.ly/2Ka0RwN, https://bit.ly/2Z0i5kx.
To note, Ardshinbank is the first private company in Armenia that issued Eurobonds in international capital markets. The placement of the first issue took place on December 9, 2014, the volume of the issue was $ 75 million, the coupon yield was 12% with quarterly payment periods, the yield of the primary placement was 12%. Bonds of this issue have already been redeemed - expired on December 9, 2017. This issue was quoted on the Vienna Stock Exchange, and clearing was carried out in the Euroclear and Clearstream systems. It was the first transaction of a private Armenian company in the international financial markets after the debut release of state Eurobonds in Armenia in 2013. The successful debut on the Vienna Stock Exchange inspired Ardshinbank to launch a second, more extensive launch of its bonds on the Irish stock exchange. The second issue, implemented in June 2015, turned out to be larger than the first. This time, the issue volume was $ 100 million, public offering, coupon yield - 12% with a semi-annual payment period. The nominal value of the bond is $ 100 thousand. The maturity date for the bonds of the second issue expires on July 29, 2020. The general manager of the second bond issue of Ardshinbank, like the first, is the investment bank JP Morgan.
According to the Financial Rating of Banks of Armenia, as of January 1, 2019, prepared by ArmInfo, the volume of funds raised by Ardshinbank from placing its own bonds amounted to 41.2 billion drams ($ 85.1 million) or 21% in the total market volume. Ardshinbank on this indicator at the reporting date is included in the TOP-3, giving up the championship held until 2018, but entrenched in the 2nd position.
To recall, Ardshinbank is one of the leaders in all key financial indicators of the RA banking system. It is the only private entity in Armenia that has issued euro bonds in international capital markets. Ardshinbank has assigned ratings from two international major rating agencies (Moody's and Fitch) equal to the rating of sovereign. The Banker, a publication owned by the Financial Times Group, named Ardshinbank as "Bank of the Year in Armenia for 2018''.