Converse Bank starts initial placement of the next AMD, USD bonds in  amount of AMD 5 billion, $5 million

ArmInfo. On November 1, Converse Bank began the initial placement of dram and dollar bonds in the amount of 5 billion drams and $5 million. The initial placement is scheduled to be completed by February 3, 2025. This is noted in the Bank's statement.  This message notes that this is the second placement of the Bank's bonds this year.

The first placement of bonds in the amount of 5 billion drams and $10 million was completed ahead  of schedule: the dram bonds were purchased within days, and the  dollar bonds - in 2 months. The demand for the Bank's corporate bonds  demonstrates their competitiveness and the interest in alternative  investment opportunities.

Within the framework of the AMD tranche (AMCOVSB2KER6), the annual  coupon yield for dram bonds is set at 9.75%, and for dollar bonds  (AMCOVSB2LER4) - at 4.5% per annum. In both cases, the frequency of  coupon payment is provided for once every six months. 100,000 bonds  were issued as part of the dram and dollar issues, each with a  nominal value of 50,000 drams and 100 dollars, respectively. The  maturity date of the dram bonds is set on November 1, 2026, and the  dollar bonds - on November 1, 2027.

The bonds will be placed both through the Converse Mobile platform  and through the Bank's branch network. After the completion of the  process, they will be listed on the Armenia Stock Exchange. Detailed  information about the issue and placement, as well the final  conditions of this issue is posted on the Converse Bank website at  the following link:  https://conversebank.am/hy/2024issue/. The terms  of the AMD tranche can be found at the link   https://conversebank.am/hy/24-1/ , and the dollar tranche - at the  link  https://conversebank.am/hy/24-eng/ .

Note that the bonds  are guaranteed by the Deposit Guarantee Fund of  Armenia, and the funds raised through bonds listed before December  31, 2024 and quoted on the Armenian Stock Exchange are not taxed.   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 it by almost 40%.