YEREVAN, June 25. /ARKA/. The National Mortgage Company (NMC) has for the first time placed five-year bonds worth 1.2 billion drams on NASDAQ OMX Armenia platform, the press office of the company reported.
The company introduced a total of 10,000 coupon bonds with maturity term of 5 years, coupon yield at 12% and coupon payments every half a year though standard closed (European) auction.
Six traders took part in the auction. Total bid volume was about 2,597,801,450 drams; satisfied bids amounted to a total of 1,207,800,730 drams. Average weighted yield was 11.824% with cutting point at 11.9998%.
The collection from the placement will be used to refinance loans to individuals by banks and credit organizations as part of the joint program of the NMC and the French agency for development of microcrediting for housing and energy efficiency improvement.
The program aims at better accessibility of renovation loans for about 3,000 families with low and middle income, as well as at promotion of demand for energy saving technologies and devices.
The program envisages two types of loans. First, small and micro loans from 500 to 4,000 euros for renovation of housing for a minimum of 5 years and a one-year grace period. Ten percent of the loan will be provided in a grant and the loan balance will be reduced respectively if 50 of the loan is used to increase energy efficiency of the housing.
The second type is loans worth from 4,001 to 10,000 euros for renovation and better energy efficiency with a minimum of 10-year repayment period and a two-year grace period. If energy efficiency in the housing is raised by 40%, the borrower receives a grant of 5% of the loan amount, and the balance is reduced respectively.
NMC’s partners in the program are Bank Anelik, the First Mortgage Company, Ardshininvestbank, Global Credit, Express-Credit, Kilikia, Conversebank, Armenian Development Bank and Armbusinessbank.
The National Mortgage Company is a refinancing credit organization registered and licensed by Armenia’s Central Bank, the sole founder and stockholder of the company. ($1-408.45 drams). -0-
