Unibank successfully places 80% of its shares

YEREVAN, November 30. /ARKA/. The Armenia-based Unibank said today it has placed 80% of a new issuance of shares worth 3.3 billion drams.
Overall, the bank plans to place 17.4 million ordinary shares with the total offering price of about 4 billion drams. The face value of one share is 100 drams, the placement price is 230 drams and the minimum package of shares available for purchase is worth one million drams. The placement is being handled by Armenbrok firm at NASDAQ OMX Armenia stock exchange and is expected to be completed by December 1. 2016.

According to a Unibank’s press release, the high demand for its shares is an indication of the investors’ high confidence in the bank, supported by its stable financial condition, prospects of development and the level of efficiency. The proceeds will be used to replenish the bank’s capital, to expand consumer and SME lending, as well as to improve lending terms for customers.

At the end of the third quarter of this year the bank’s total capital exceeded 31 billion drams, the assets amounted to about 175 billion drams, liabilities – to 143 billion drams. Since the beginning of the year the bank earned 622.6 million drams in profit. Unibank paid also 1.9 billion drams worth taxes for the first 9 months of 2016 coming 45th in the list of the 1000 largest corporate tax payers.

The press release reminded also that Unibank offers another convenient tool designed to encourage customers to keep their savings at the bank. They are bonds in the national currency with high annual yield of 13.5% and quarterly coupon payments. The maturity of the bonds is 24 months with buyback scheduled for the 23rd of November 2018.

The issuance amount is 250 million drams (25,000 bonds with a nominal value of 10 thousand drams). The minimum package available for purchase is worth one million drams. After being placed the bonds are expected to be listed at NASDAQ OMX Armenia.

Under the Armenian law on insurance of private bank deposits, the funds raised as bonds, as well as bank deposits are guaranteed by the Deposit Insurance Fund in the amounts stipulated by the law.

The bonds can be purchased in the main office of Unibank or in one of its 46 branches. The placement will be carried out until February 7, 2017.

Unibank was founded in October 2001. In 2002 it introduced Unistream system. In 2015 the bank was reorganized to an open joint stock company. Some 93.5% of its shares are held by Ripatonso Holding LTD. ($1 – 480.11 drams). -0-

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