ARARATBANK PREPARING FOR NEXT PLACEMENT OF ITS CORPORATE BONDS WORTH 400 MLN AMD AT 9% RATE OF RETURN
arminfo
2008-05-13 18:54:00
ArmInfo. ARARATBANK is preparing for the next placement of its
undocumentary corporate coupon bonds worth 400 mln AMD at 9% rate
of return. As the Dealing Center of ARARATBANK told ArmInfo, the
circulation period is 1.5 years, a total of 40 thsd bonds will be
issued, the nominal value of each being 10 thsd AMD. Like during the
previous issue, the coupon payments will be carried out quarterly.
According to the source, the placement of these securities will most
likely take place in late May early June. At the moment, the issue
prospectus of the bonds is submitted for the approvement of the Central
Bank of Armenia (CBA). The dates of quarterly coupon payments will be
specified after the CBA approves the issue of the bonds. The issue
aims to attract additional idle funds from the market to transform
them into profitable assets in the future.
Like during the previous issue, these securities will be rated among
"Abond" by the Armenian Exchange (ArmEx), where demand for the bonds
considerably prevailed over supply. The bond yield of the next issue
is increased by 1%, which will make them more attractive.
According to the bank’s data, the circulation period of the previously
issued undocumentary corporate coupon bonds expired on May 12,
2008. The volume of their issue was 250 mln AMD, the rate of return
was 8%, the circulation period was 1 year. Within the frames of the
first issue, a total of 25 thsd bonds were placed, the nominal value
of each being 10 thsd AMD.
The volume of operations on the ARARATBANK’s corporate coupon bonds
at ArmEx throughout the period of their circulation (from May 12,
2007 till May 12, 2008) totalled 475.179 mln AMD, the number of
transactions was about 100.
The major part of the operations was carried out in 2007 – 309.626
mln AMD, the number of transactions being 64.
To note, as of April 1, 2008, the total capital of the ARARATBANK made
up $16.6 mln AMD, assets – $85.3 mln, total provision of crediting –
$35.8 mln.
The bank is active in the market of government securities. In
particular, as of April 1, 2008, investments in government securities
totalled $27.9 mln or 32,4% of the total assets, which is 3 times
as high as in the same period of 2007. On June 18, 2007, ARARATBANK
received a status of the Armenian government’s agent for managing the
internal state debt. According to the results of the first quarter
of 2008, the net profit of the bank totalled 222.8 mln AMD. To note,
Armeconombank issued bonds before ARARATBANK at the end of 2005. The
bonds of the Cascade Credit UCO and Shen Concern enterprise entered
the market in 2006. At the moment the corporate bonds of four issuers –
ArmRusgasprom CJSC, Valletta LLC, Shen Concern CJSC, and the Armenian
Copper Program CJSC are rated among Bbond by ArmEx. The Elite Group
company will shortly join this list.