Unibank issues USD bonds with 5.25% annual yield

01.09.2020 | 15:55 Home / News / Capital Market /
#Unibank #bonds

Unibank has announced the new issue of registered coupon bonds in the amount of USD 5,000,000.

According to the bank, the tranche will be launched on September 1, 2020. The par value of the bond is USD 100; the minimum lot being USD 1000, which makes the securities available to a wide range of investors, including individual entities.

The placement of the newly issued bonds is scheduled until October 7, 2020.

The primary listing of the bonds will be held on the AMX Armenian Stock Exchange, while the secondary listing is to be held on the Moscow Exchange. Prior to the secondary listing, only qualified investors will be able to purchase bonds in Russia and after the completion of the listing - everyone interested. In Russia, the placement agent is GX2 Invest, the company that can be contacted on all issues related to the purchase of bonds. In Armenia, the market maker is “Armenbrok” OJSC.

Unibank’s USD bonds are included in the third level of Moscow Exchange’s stock exchange list (ISIN - AMUNIBB2AER2). This allows Russian investors to purchase bonds according to a facilitated scheme without opening accounts in Armenia. To become an owner of Unibank bonds, all it takes is to open an account with the National Settlement Depository or with a custodian working in Russia.

The maturity of the bonds is 36 months. Every quarter, the owners will receive a coupon rate of 5.25% per annum, which exceeds the rates of traditional bank deposits. Let\s compare: the average rate for USD deposits in Armenia does not exceed 4-4.5% per annum. For Russians, the attractiveness of this financial instrument is even higher, since the rates on USD deposits in Russia are 1.5% per annum, and the rates on dollar bonds are 1.5-2.5%. Hence, the guaranteed yield of Unibank bonds is more than twice higher.

In accordance with the Tax Code of the Russian Federation, income on Unibank bonds received by residents of the country, both individuals and legal entities, are taxed only in Russia. In Armenia, income from bonds listed on the stock exchange with a maturity of two or more years is not subject to taxation.

Bonds are a conservative financial instrument, ideal for the low-risk supporters and those who are interested in a predictable income.

Key benefits of bonds:

- guaranteed and high yield specified in the terms of issue;
- high liquidity: they can be quickly sold at the market price or close to it;
- suitable for conservative investors, low risks.

The reliability of Unibank bonds is strengthened by insurance guarantees. The bank’s obligations are insured by the Deposit Guarantee Fund of Armenia - for individuals, the guaranteed amount of compensation is USD 10,000.

“Many investors in Armenia, and now in Russia as well, have been convinced that Unibank’s bonds are an excellent way to significantly increase capital. The financial literacy of the population is increasing: people are beginning to realize that money should generate income. We highly appreciate the trust of our investors and offer a reliable, stable and highly liquid investment instrument,” said Mesrop Hakobyan, CEO of Unibank.

Unibank has been on the bond market since 2016. In total, the bank paid out over USD 5 million and AMD 350 million to the investors. The total amount in circulation is over USD 17 million and AMD 1 billion.

Unibank is one of the leaders in the retail banking services market in Armenia. The bank accounts for about 20% of the POS loan market. The main areas of development are retail lending, financial support for small and medium-sized businesses, as well as private banking. The level of VIP services in this area was highly appreciated by the jury of the prestigious SPEAR’S Russia Wealth Management Awards 2018 - Unibank Privé won the nomination “Best Private Banking Client Service in the CIS”.

In 2015, Unibank was the first among the country’s banks to hold an IPO and place securities on the Armenian Stock Exchange. In August 2020, a secondary listing of Unibank bonds was carried out on the Moscow Exchange, which made this investment instrument more accessible to Russian citizens.

Details on the terms of the eleventh bond issue and the issue prospectus are published on the official website of Unibank and in the Interfax Disclosure Center.

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