Category: Exchange

Covered Mortgage Bonds by First Mortgage Company placed at NASDAQ OMX Armenia.

12.12.2017

On December 12, 2017 during a press conference held at NASDAQ OMX Armenia ARARATBANK announced the placement of covered mortgage bonds issued by First Mortgage Company UCO LLC.

First Mortgage Company submitted for placement two issues of coupon bonds with the total nominal value of USD 500,000 (FMGCB1) and AMD 100,000,000 (FMGCB2). The first issue of bonds included 20,000 coupon bonds (FMGCB1) with nominal value of USD 25, coupon rate of 6.5% and maturity period of 2 years. The second issue includes 10,000 coupon bonds (FMGCB2) with nominal value of AMD 10,000, coupon rate of 10.5% and maturity period of 2 year.

Placement results for FMGCB1 bonds:  

9 transactions were concluded during the placement. The bonds were fully placed, as a result of which the Issuer has attracted USD 500,046.7 from placement. Cut-off price of the bonds was USD 25, weighted average yield was 6.4950% and the cut-off yield stood at 6.5%.

Placement results for FMGCB2 bonds: 

7 transactions were concluded during the placement. The bonds were fully placed, as a result of which the Issuer has attracted AMD 100,004,450 from placement. Cut-off price of the bonds was AMD 10,000, weighted average yield was 10.4976% and the cut-off yield stood at 10.500%.

Mr. Karen Zakaryan, Deputy CEO of NASDAQ OMX Armenia welcomed the new financial instrument - covered mortgage bonds to the capital market, noting that the Exchange will continue to act as an effective investment platform both for issuers and investors.

Mr. David Atanessian, CEO of First Mortgage Company added that attracted funds will be used to finance new mortgages and that the company will continue to issue covered mortgage bonds in the future as well.

Mr. David Harutyunyan, Deputy CEO of ARARATBANK noted, that it is planned to list the bonds on NASDAQ OMX Armenia stock exchange.

Updated as of: 14.12.2017