YEREVAN. – Ucom company is the first in Armenia’s telecommunication market to issue AMD and USD bonds, Co-founder and Director General at Ucom Hayk Yesayan said during a press conference on Friday.
The volume of bond issuance is $5 mln with annual yield of 7.5%, and 250 million AMD with annual yield of 11 percent.
The nominal price per 1 bond is $100 and 100,000 AMD respectively. All interested individuals and legal persons may purchase Ucom bonds. The coupons will be paid on a quarterly basis.
As noted by Hayk Yesayan, this is a mutually beneficial proposal for potential investors and the company. By investing in Ucom, they will not get revenues only, but will contribute to the development of the company. The company will get resources for the further development and expansion.
Attracting funds in this way is more profitable for the company than bank loans, and interest rates for potential investors are higher than for deposits with banks. Moreover, since this is a pilot program, the bond yield will be higher than the average in the market.
The funds received through bonds will be used for capital investments and partially for refinancing, Yesayan said.
The nominal coupon bonds with a maturity period of 36 months will be distributed through “Armenbrok” OJSC during the period from 16 May to 15 July 15, 2019.
“However, there is a great interest in them now,” said the director of “Armenbrok” Aram Kayfajyan. According to him, the bonds will appear on the Armenian Stock Exchange, moreover, investors will be able to resell them at any time , and it is not necessary to wait for the maturity date.
Bonds can be purchased by all interested individuals and legal entities. The investor has to present a document proving his identity (passport or ID-card), and he will need just 15-20 minutes to get the bonds. The bonds are available in “Armenbrok” and Ucom.
Hayk Yesayan is confident that the bonds will provoke interest of the investors, and he did not rule out that they might issue Ucom bonds in the future as well.