Banks.am

Converse Bank started today its first tranche of corporate bonds issuance.

The banks informs, the bonds will be listed on NADAQ OMX Armenia stock exchange to be traded on the secondary market.

The total value of the issue will make AMD 1 billion and USD 10 million. The total value of the first tranche is USD 6 million. The face value of each bond is USD 100 with 24-month maturity period and semiannual coupon payment frequency. The coupon rate is 5.75% per annum.

"With this issuance, Converse Bank will diversify its liabilities portfolio and direct the attracted funds to the financing of different investment project in different sectors of the economy," Converse Bank CEO Arthur Hakobyan remarked.

"Bonds are a wildly used investment instruments and have an essential advantage compared to traditional time deposits. They can be sold at any point in whole or in part, without losing the accrued interests," Converse Bank CFO Grant Akopian said.

Bonds are guaranteed by the Deposit Guarantee Fund to the amount of guaranteed deposits.

Capital Investments CJSC will be the registrar and the market maker for the bonds.