ArmInfo. Converse Bank started placement of the regular tranches of AMD and USD bonds in the amount of 1 billion AMD and $ 5 million. As the press service of Converse Bank told ArmInfo the start of the initial placement of these issues dates back to October 17, and completion is scheduled on February 28, 2020. But it is appropriate to note that with previous issues of Converse Bank bonds the initial placement was completed ahead of schedule.
According to the source, the coupon yield on AMD bonds is 9.5% per annum, and the USD ones- 5.25% per annum. The maturity period for the bonds of these two issues is 36 months. Coupon payments are to be made every six months.
The bank said that the launch of the regular tranches is aimed at ensuring the continued nature of the issue of bonds, thereby providing customers with the opportunity to purchase them in both the primary and secondary markets.
Thus, in 2019 Converse Bank is already implementing the second placement of its bonds, in particular the previous issue dated April 15 this year with the completion of the initial offering on August 23 and listing on September 12 - these were AMD bonds for 1 billion AMD and $ 10 million worth USD bonds.
More detailed information on new issues is available on the Converse Bank website under the link: https://conversebank.am/hy/2019issue/
As of October 22, 2019, 5 issues of Converse Bank bonds are quoted on the Armenian AMX stock exchange. These are 2 dollar tranches in the total amount of $ 20 million, 2 AMD ones in the amount of 4 billion drams, and 1 EUR for 5 million euros. All of these issues are on the Abond main list. Coupon payments for these issues are made once every six months. The profitability of dollar issues since the first tranche (from May 5, 2017) on currently placed bonds decreased from 5.75% to 5.25%, and dram - from August 2017 10.5% to the current 9.5%. In October 16, 2019, one tranche of Converse Bank's dollar bonds in the amount of $ 4 million was repaid with a coupon yield of 5.25%. Out of the tranches quoted on the stock exchange as of October 22 this year, Converse Bank in 2021, namely on April 26, will pay off one tranche of USD, EUR and AMD, $ 10 million (yield 5.25%), 5 million euros (yield 4%), 3 billion drams (yield 9.5%) respectively, which were issued on April 26, 2018 with the completion of the initial placement on August 21 and entering the listing list on September 5 of the same year. The remaining two issues will be redeemed in 2022, namely April 15, and these are AMD bonds for 1 billion drams (yield 9.75%) and dollar bonds for $ 10 million (yield 5.5%).
According to the Financial Ranking of the Banks of Armenia as of January 1, 2019, prepared by ArmInfo IC, Converse Bank raised 16.7 billion drams ($ 34.4 million) from the placement of its own bonds with 2.8- fold y-o-y growth. Converse Bank takes the 4th position in terms of the volume of borrowings from the placement of its own bonds, and the 1st position in terms of annual growth of this indicator. 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. Converse Bank completed the year 2018 with a net profit of 4.9 billion drams, exceeding the level of the previous year 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 shareholders of the Bank are Advanced Global Investments LLc (led by Eduardo Eurnekian) - 80.94%, HayPost Trust Management B.V. - 14.06%; Cathedral of the Mother See of Etchmiadzin - 5%.