Fast Credit UCO places bonds worth USD700,000 and AMD70,000,000 on NASDAQ OMX Armenia20.07.2018
July 20, Yerevan, Armenia: On July 20 Fast Credit UCO, CJSC placed coupon bonds (FSCRB1) and (FSCRB2), denominated in Armenian dram and US dollar respectively, on NASDAQ OMX Armenia Exchange.
The company submitted for placement 7,000 coupon bonds for the amount of USD 700,000 with nominal value of USD 100 and maturity period of 24 months. Fourteen transactions were concluded during the placement, with bonds for a total of USD 700,000 being placed eventually.
The cut-off price of the bonds was USD 100, the cut-off yield stood at 6.9%, and weighted average yield was 6.9%.
The company also submitted for placement 7,000 coupon bonds for the amount of AMD 70,000,000 with nominal value of AMD 10,000 and maturity period of 24 months. Eight transactions were concluded during the placement, with bonds for a total of AMD 70,060,520 eventually.
The cut-off price of the bonds was AMD 10,000, the cut-off yield stood at 10%, and weighted average yield was 9.9512%.
Vahe Badalyan, Chairman at Fast Credit UCO, believes bonds are a profitable financial instrument for all investors who want to make simple and fast investments that offer high and stable return. He also added that the introduction of this financial instrument is taking their company one step forward to the transformation into a bank.
"It is exemplary that non-banking companies issue bonds, a move that allows a new type of issuers to enter the capital market. This is a message to businessmen that it is not obligatory to attract new financial means secured with a collateral or limited with the collateral amount in order to receive additional capital. Instead, they can take advantage of the trust in their company’s financial results and management skills and attract funding without any property as collateral,” said Hayk Yeganyan, CEO at Nasdaq OMX Armenia.