Ardshininvestbank (Armenia) Announces First Coupon Bond Issue

ARDSHININVESTBANK (ARMENIA) ANNOUNCES FIRST COUPON BOND ISSUE

ARKA
Nov 12, 2008

YEREVAN, November 12. /ARKA/. On November 10, Ardshininvestbank
(Armenia) announced the first issue of nominal nondocumentary coupon
bonds to the amount of 1.5bln AMD.

"A 1.5bln AMD issue has no precedents in Armenia," Ardshininvestbank
Board Chairman Aram Andreasyan said at a presentation of the bonds.

He pointed out a complicated process of securities market formation
in Armenia now.

"The process is progressing due to the Central Bank’s active steps,
the first issue of Ardshininvestbank bonds being evidence thereof,"
he said.

A total of 150,000 bonds are to be placed, the nominal value of each
bond being 10,000 AMD. The subscription to bonds will last for 25
calendar days – November 10 to December 5, 2008. The maturity date
is December 5, 2009.

Quarterly payments of coupon yield will be effected during next year
– 250 AMD for each coupon. The first coupon payment is scheduled
for March 5, 2009, second for June 5, third for September 5, fourth
(redemption of bonds) for December 5, 2009.

Chairman of the Central Bank of Armenia (CBA) Artur Javadyan pointed
out that this is unique event in the context of international crisis.

"New instruments of this type in Armenia will allow the country to
attract not only domestic, but also foreign investors," Javadyan said.

Referring to Ardshininvestb ank Board’s decisions, the Sergey Virabyan,
Ardshininvestbank Board Vice-Chairman, pointed out that by means of
the issue the bank aims to increase the crediting of small & medium
size enterprises.

"The funds to be received from the placement of bonds will be doubles
due to the bank’s own funds and directed to SME soft crediting programs
– from an annual interest rate of 13%," he said.

Virabyan pointed out unique terms of the first bond issue.

"Particularly, during the circulation bonds are to be bought back by
the bank at a pre-fixed price," he said.

He reported that individuals’ investments in Ardshininvestbank stock
are considered to be a bank deposit and are secured by the RA Deposit
Insurance Fund.

"We hope, and are even sure, that the Armenian public and economic
entities will show a keen interest in our bonds, and they will give
an impetus to steady progress of both economy and the secondary
securities market," Virabyan said.

According to the information provided by Ardshininvestbank, during the
entire period of Armenia’s independence, 11 companies, including two
banks, have issued corporate bonds to the total amount of 6.91bln AMD
(17 bond issues). At present, nominal corporate bonds to the total
amount of 6.15bln AMD are in circulation.

Ardshininvestbank’s bonds are nonconvertible ones, their bond turnover
being 12 months and annual yield2010%.

The bank’s bonds will be listed on the Armenian Stock Exchange during
ten workdays after being placed. Under the bank-set terms, bonds will
be redeemed and coupon payments effected in terms of Armenian drams
by means of transfers to the bank account within two workdays from
the moment of redemption.

The Central Bank issued Banking License #83 to Ardshininvestbank on
February 27, 2003.

Ardshininvestbank principal stockholders are the Region investment and
financial corporation (86.82%) and, since late 2007, the International
Finance Corporation (10%).

The bank is an affiliated member of the international payment system
MasterCard/Europay, as well as a share holder in card operations
carried out in Armenia by the Armenian Card CJSC.

On September 30, the bank’s capital reached 22.7bln AMD, assets
119.2bln AMD, liabilities 94.5bln AMD, credit investments 79.8bln AMD,
retained earnings 4.1bln AMD. The bank has 55 branches, with six of
them located in the Nagorno-Karabakh Republic (NKR). The bank also
has a representative office in Paris.