Yerevan /Mediamax/. Placement of “Inecobank” bonds takes place with great difficulty, General Director of “Capital Asset Management” Investment Company Tigran Karapetyan stated in an interview to Mediamax.

“Capital Asset Management” is the underwriter of “Inecobank” bonds placement.

Tigran Karapetyan stated that the level of the bank’s bond placement still remains at zero point, noting that at present the expectations of investors are pessimistic, and they prefer to accumulate savings. Tigran Karapetyan expressed hope that the investors will stir up in the second half of April.

Head of the “Inecobank” Department on Operations in International Markets Ruben Papikyan stated in an interview to Mediamax that the bank hopes for successful placement of bonds in the view of the fact that U.S. Agency for International Development (USAID) provides the investors of “Inecobank” bonds with 50% guarantee.

“USAID guarantee is counterbalance to pessimistic moods in markets”, Ruben Papikyan stated.

After the conclusion of placement (April 27, 2009), the bonds will be listed on “NASDAQ OMX Armenia” Stock Exchange.

The placement of the first tranche of the bank’s discount bonds started on March 25 and will last till April 27. The volume of the tranche makes 350mln AMD. 7 thousand bonds with the nominal value of 50 thousand AMD are placed. The annual yield of the bonds makes 9.5%. The repayment date – March 25, 2010. The prospectus of the issue reads that the means, attracted as a result of the placement, will be directed to crediting.

The total volume of the issue of the bank’s corporate bonds made 2.7bln AMD. The nominal value of the bonds makes 50 thousand AMD. The total number of bonds makes 54 thousand, 37 thousand of which will be placed in the form of discount bonds with the maturity term of 365 days, the remaining 17 thousand bonds will be placed in the form of coupon bonds with maturity term of 18 months. The bonds are inconvertible.

The issue of the bank’s bonds was realized in cooperation with U.S. Agency for International Development (USAID), which provides 50% guarantee to investors, which purchase the bank’s bonds.

Ruben Papikyan informed that the remaining part of the issue of “Inecobank” bonds will be placed in the course of 3-4 years.