YEREVAN, December 16. /ARKA/. Armenian Araratbank intends to place nominal non-documentary coupon bonds worth AMD 250 million over the period between December 14 and 25, David Harutyunyan, deputy executive director of the bank, said Monday in Novsti International Press Center.
Garik Adamyan, chief of Araratbank’s strategy and methodology division, who spoke at the same press conference, said that the bank planned to place 25,000 18-month bonds of AMD 10,000 nominal cost each at up-to-ten-percent annual interest.
Payment will be made in quarterly installments.
He said that the bank intended to issue corporate bonds yet in late 2008.
“We were going to issue bonds worth 200 million, but taking into account things on the market and the results of our studies, we decided to enlarge the amount to AMD 250 million,” he said adding that this decision has mainly been grounded on the demand displayed by investors for corporate securities, included bonds.
Adamyan also said that after issuing the bonds Araratbank applied to NASDAQ OMX Armenia Stock Exchange for listing.
He said that investors would be legal entities and individuals, who are residents and non-residents. The issue will be carry out by the bank’s home office and branches.
Deputy Executive Director David Harutyunyan said that the bond registration on the stock exchange was planned to be completed by late January or early February, and one or two investment companies would appear as market makers.
These companies will ensure liquidity of these bonds.
“This issue differs from the previous two with 10% yield instead of 9% of first two issues.”
In 2007, Araratbank issued its first bonds worth AMD 250 million.
Later, in June 2008, the bank embarked on another issue worth AMD 400 million.
Araratbank OJSC, heir of ArmSvyaz, was established in 1991.
In October 1996, the bank received the license #4. European Bank for reconstruction and Development holds 25% of Araratbank’s shares and 74.1% belong to Barsegh Beglaryan, owner of Flash Company.
On January 30, 2009, Araratbank joined NASDAQ OMX Armenia Stock Exchange.
The bank has 27 branches in Armenia. -0—
