Friday, April 26 2024 16:48

ArmInfo. Within days, Converse Bank's dram coupon bonds were bought in the primary market in the  amount of 5 billion drams. It is noteworthy that this tranche was put up for sale together with the dollar bonds on April 17, and within a week the dram bonds were fully distributed. This is noted in a message from Converse Bank.

The message mentions that within this tranche, the coupon yield was  set at 10.25% per annum, and the coupon payments were set every six  months

The maturity date of these bonds is set on April 17, 2026. As part of  the dram and dollar issues, 100 thousand bonds were issued, each with  a nominal value of 50 thousand drams and $100, respectively.  "The  completion of the placement in such a short time indicates a high  demand for investment products and securities offered by Converse  Bank," the message emphasizes, which expresses gratitude to clients  for their trust and great interest in the Bank's corporate bonds.

At the same time, it is reported that the initial placement of  Converse Bank dollar bonds in the amount of $10 million, which were  put up for sale simultaneously with the above-mentioned dram issue,  continues.  Within the dollar tranche, the coupon yield is set at  4.75% per annum, with the frequency of coupon payments also once  every six months. The maturity date of the dollar bonds was set for  April 17, 2027. A detailed prospectus for the issue of this tranche  is posted on the Bank's website under the link  https://conversebank.am/hy/2024issue/.

The message from Converse Bank also noted that Converse Bank recently  repaid dollar bonds in the amount of $10 million and dram bonds in  the amount of 5 billion drams, which were placed in the spring of  2021 and spring of 2022. Moreover, dram bonds were placed in two  tranches, respectively, with a coupon yield of 10% and 9.75%, and  dollar bonds were offered for sale in one tranche with a coupon yield  of 5.25%. The high interest in bonds observed during the placement  process was reflected in the secondary market.

According to the Financial Rating of Armenian Banks as of January 1,  2024, prepared by ArmInfo IC, Converse Bank raised funds from the  placement of its own bonds in the amount of 20.4 billion drams ($50.3  million). In 2023, the bank increased this figure by almost 40%.