Today, NASDAQ OMX Armenia marked the successful launch of the first securitized bond issuance in Armenia and announced the listing of these bonds at the stock exchange for the secondary market trade.  

It should be recalled that 5 Universal Credit Organizations (UCO), CARD AgroCredit, Garni Invest, New Horizons, Bridge, and  Global Credit participated in credit portfolio securitization transaction organized in Armenia for first time.

According to Embassy of the U.S. in Armenia, this transaction was made possible through the joint efforts of USAID, Capital Investments, and universal credit organizations.

“The first securitized bond issuance in Armenia is also an opportunity to support new financial products in Armenia.  This new type of financial product combines many development initiatives that we have pursued over the years – all focused on making more funds available in the credit system for the development of rural areas,” said Ambassador to Armenia Richard Mills.

According to him, bonds will support farmers to increase production and to contribute to the activism of entrepreneurs in rural communities.

The bonds were issued by a newly established special purpose vehicle, the Loan Portfolio Securitization Fund I.  

Managed by Capital Investments, the Fund was established in August 2015 with the purpose of securitizing the $2 million worth microfinance loans of the five participating UCOs.  

It’s worth mentioning that Development Credit Authority (DCA) guarantee was issued in late November 2015 to cover 50 percent of the bond’s principal.