Tuesday, April 21 2015 15:48

 Today, on April 21, at a special ceremony held at NASDAQ OMX Armenia ARMSWISSBANK announced the placement of the third issue of its USD denominated bonds, as well as introduced the first and the second placements of the bonds by the Bank, the press office of NASDAQ OMX Armenia reports. 

Mr. Konstantin Saroyan, CEO of NASDAQ OMX Armenia noted that the Bank has successfully implemented several issues of securities of different companies and now the Bank finally makes placement of its own bonds. "I think issues are needed even in the crisis period, because they allow the banks to outstrip the competitors and the banking market in general to have a new accumulated portfolio and new capacities. I wish the Bank to conduct new issues of not only bonds but also shares in the future and to enter international markets," said Mr.Saroyan. 

During the ceremony Mr. Gevorg Machanyan, Executive Director of ARMSWISSBANK rang the symbolic bell for opening of the trading day at NASDAQ OMX Armenia. He said that the first issue of the Bank's corporate USD denominated bonds implies three tranches to ensure some diversity for investors. "The Bank is also planning new issues secured by shares, bur these plans are still being considered. We will do everything possible to make the issues efficient, timely and profitable," said Mr. Machanyan.      

He told ArmInfo that the Bank decided to issue the bonds now that the Armenian financial market experiences some stabilization in the interest rates. "The rates impartially reflect the current risks and we decided to provide our customers and investors with additional alternative investment tools. One of such tools is the corporate securities with the yield meeting the average level on the market. I should note that the customers were interested in that tool, because the Bank provides broker services by carrying out investment banking. He added that the funds raised from the placements will be spent on lending, investment products and liquidity regulation instruments.    

Mr.Karen Turyan, Director of the Investment Department of ARMSWISSBANK, said that the first USD issue of coupon bonds will amount to 10 mln USD. 

On April 16, 2015 placement of the first and the second issues of foreign currency denominated bonds by "ARMSWISSBANK" CJSC took place at NASDAQ OMX Armenia. The Bank submitted for placement USD 2,000,000 (1st tranche, SWISB1) and USD 3,000,000 (2nd tranche, SWISB2) nominal coupon bonds.  The first tranche of bonds included 2,000 coupon bonds (SWISB1) with coupon rate of 7.5% and maturity period of 3 years while the second tranche of bonds included 3,000 coupon bonds (SWISB2) with coupon rate of 8.0% and maturity period of 4 years. The nominal value of the bonds for both tranches is USD 1,000. Placement results for SWISB1 bonds:  purchase orders for a total of USD 2,000,000 were placed for the Company's bonds, as a result of which the bonds were fully placed.  The Issuer has attracted USD 2,000,000 from placement. The cut price of the bonds was USD 1,000, weighted average yield and the cut yield was 7.5 %. Placement results for SWISB2 bonds: purchase orders for a total of USD 3,010,000 were placed for the Company's bonds, as a result of which the bonds were fully placed.  The Issuer has attracted USD 3,000,000 from placement. The cut price of the bonds was USD 1,000, weighted average yield and the cut yield was 8.0 %.  

The third issue of USD denominated bonds comprises 5,000 coupon bonds with nominal value of USD 1,000, annual yield of 8.5% and maturity of 5 years. Placement of the bonds will take place on April 27, 2015 at NASDAQ OMX Armenia. 

Armswissbank was established on October 7, 2004 as a closed joint stock company and on February 25, 2005 was granted banking license by the Central Bank of Armenia. The Bank's shareholders are Mr. Vardan Sirmakes, CEO, founder and 100% owner of "Frank Muller Watchland" company and BELEGGINGSMAATSCHAPPIJ JONGO B.V., owning 80% and 20% of the Bank's shares, accordingly.  Armswissbank works in two main directions: corporate and investment, using private banking techniques. 

According to the Financial Rating of Armenian Banks, prepared by the Agency of Rating Marketing Information, as of 1 Jan 2015, Armswissbank's assets amounted to 84.5 bln AMD, total capital - 17.9 bln AMD, lending - 38.1 bln AMD, liabilities - 66.6 bln AMD, time deposits - 29.3 bln AMD (with the corporate time deposits prevailing over the personal ones). The Bank's investments in government bonds amounted to 28.6 bln AMD. At the yearend of 2014, the Bank's net profit totaled 2.3 bln AMD. 

NASDAQ OMX Armenia is the only stock exchange currently operating in Armenia. On January 26, 2009, "Armenian Stock Exchange" ojsc was officially renamed as "NASDAQ OMX Armenia" ojsc. On June 5, 2009, "NASDAQ OMX Armenia" ojsc became the owner of 100% of the shares of the "Central Depository of Armenia" ojsc. 

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