ArmInfo. Converse Bank completed prior to the scheduled date the initial placement of the regular dram and dollar bonds in the amount of 1 billion drams and $ 5 million, respectively. As ArmInfo was told by the press service of the bank, the initial offering of bonds of these issues was planned to be completed on February 28, 2020. It is appropriate to note that in case of previous bonds issues by Converse Bank the initial placement was also completed ahead of schedule.
According to the source, the yield on the coupon of dram bonds is 9.5% per annum, and dollar - 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. These issues will be included in the list of corporate bonds of the AMX Armenia stock exchange for turnover in the secondary market.
Thus, in 2019, Converse Bank has already carried out the second placement of its bonds. The previous issue was dated April 15 this year with the completion of the initial public offering on August 23 and listing on September 12, these were dram bonds worth 1 billion drams and dollar bonds worth $ 10 million.
"The completion of the initial placement more than 2 months earlier than the stipulated time indicates a high interest in Converse Bank bonds. In total, this year the bank issued four tranches of bonds placed in two stages, thereby significantly increasing the share of dram bonds in the portfolio, which is about 20 billion drams. Due to long-term issues Converse Bank is one of the leading participants in the corporate bonds market of Armenia, "the bank's statement reads.
As of December 23, 2019, 5 issues of Converse Bank bonds are listed on the Armenian AMX stock exchange. These are 2 dollar tranches in the total amount of $ 20 million, 2 dram tranches in the amount of 4 billion drams, and 1 euro 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 10.5% in August 2017 to the current 9.5%. Among the Converse Bank's bond tranches quoted as of December 23 on the exchange platform in 2021, namely April 26, one tranche of dollar, euros and dram, respectively, by $ 10 million (yield 5.25%), 5 million euros (yield 4%), 3 billion drams (yield 9.5%), will be paid off, which were issued on April 26, 2018 with the completion of the initial public offering 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 Rating of the Banks of Armenia prepared by ArmInfo IC as of October 1, 2019,Converse Bank raised over 18.5 billion drams ($ 38.9 million) from the placement of its own bonds with a y-o-y growth of 10%. Converse Bank takes the 4th position in terms of the volume of borrowings from the placement of its own bonds. Assets of Converse Bank as of this date amounted to 302.2 billion drams, liabilities - 260.1 billion drams, total capital - 42.1 billion drams. Converse Bank completed 9 months of 2019 with a net profit of 3.9 billion drams, exceeding the level of the previous year by 32.6%.
It should be noted that Converse Bank has been operating in the Armenian market since September 1996. As of October 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%.