11th Issue of Corporate Bonds By National Mortgage Company Listed at NASDAQ OMX Armenia

On July 11, 2014 the eleventh issue of corporate bonds by "National Mortgage Company" Refinancing Credit Organization CJSC (NMC RCO) listed at NASDAQ OMX Armenia on the main Abond list, Executive Director of the UCO "National Mortgage Company", Mher Edigaryan, said at today's press-conference.

He said that CJSC "Armswissbank" will again come forward as a market-maker of corporative bonds of the National Mortgage Company. 

He also added that the Company's bonds comprising of 120,000 coupon bonds with nominal value of AMD 10,000, coupon yield of 12%, maturity period of 60 months will be traded under NMCCB2B ticker symbol and allowed to manual and REPO trading as well.
He said that the funds gained from placement of the bonds will be directed at refinancing of credits of individual persons, given by the banks and credit organizations within the frames of the joint programme  of the National Mortgage Company and French Development Agency for micro-crediting of apartments and raising of their energy effectiveness. Two types of credits will be delivered within the frames of this programmes. First, micro and small credits at 500-4000 EUR, with a repayment period up to 5 years and grace period - 1 year. The given credits will be delivered for repairing of apartments. The second type of credit will be delivered at  4001-10000 EUR for repairing and raising of energy effectiveness of apartments. The minimal repayment period of these credits is 10 years with a grace period 2 years. If energy effectiveness of an apartment is raised by 40%, in that case a borrower will get 5%grant out of the sum of the credit, and the actual balance of credit debts will be reduced at this amount. 

For his part, the head of NASDAQ OMX, Konstantin Saroyan, added that the Armenian emitters in the person of the National Mortgage Company have entered a new level and have fully changed the activity strategy, having issued more long-term bonds circulating in the Abond category. He said that the bonds of the first 9 tranches of the National Mortgage Company were short-term. "At present, the National Mortgage Company is the most active emitter of the Armenian capital market, and is the leader among the Armenian companies by the number of emissions", - Saroyan emphasized. 

For his part, Deputy CEO, Karen Turyan, Director of Investment Department at ArmSwissBank, pointed out that ArmSwissBank has been awarded with the status of a market maker of the National Mortgage Company's mid-term corporate bonds for the fifth time. "The placement has been successful enough and the bonds are in high demand both in the primary and secondary markets", he said. 

National Mortgage Company RCO CJSC was registered in the Central Bank of Armenia by the decision N 1/1167A of the board of the Central Bank of Armenia dated October 19, 2011 Registration certificate N 26, Activity License N 26). The only shareholder is the Central Bank of Armenia. As of 23 April 2014, the total amount of loans refinanced by the National Mortgage Company was 36 bln AMD (4482 loans). As of 1 April 2014, the company's assets totaled 31.6 bln AMD, and the total capital amounted to 10.8 bln AMD.  In Q1 2014 the retained profit of the company totaled 167.3 mln AMD.
To note, ArmSwissBank is also the market maker of Artsakh Hydropower Plant's shares. ArmSwissBank CJSC was founded on 7 October 2004. The founder and

CEO of "Franck Muller Watchland" Company, Vardan Sirmakes is the owner of 11670 (80 %) ordinary shares of "ARMSWISSBANK" CJSC. 2918 (20%) ordinary shares of the Bank belong to "Belegingsmachepij Jongo" LLC.