Armenian Ararat bank announces emission of simple nominal undocumented shares totaling AMD 381.5mln

YEREVAN, December 18. /ARKA/. Armenian Ararat Bank announced the issue of simple nominal undocumented shares totaling AMD 381.5mln.Executive Director, Chairman of Board of Ararat Bank Ashot Osipyan told reporters that the issue will be implemented through direct public offering (DPO).

“Those interested can obtain shares in the central office of Ararat Bank, as well as in any of its branches by filling in corresponding applications,” he said.

Osipyan pointed out that the main aim of entering the DPO market is diversification of sources of capital attraction, one of which is the issue of simple shares.

“The bank aims at defining the real value of shares of Ararat Bank, as well as raise the level of its corporate management,” he said.

Osipyan pointed out that the minimal number of issued shares totals 70,000, and the maximal – 76,300, the principal value of each is AMD 5,000, and the value of placement – AMD 5,900.
“Thus, total incomes from placement of Ararat Bank shares are expected within AMD 450.2mln,” he said and added that the emission started on December 17, 2007 will last till January 21, 2008.

Osipyan also said that both individuals and legal entities, being residents or non-residents of Armenia, may obtain shares of Ararat Bank.

Ararat Bank (legal successor of “Amrsvyaz” Bank) was founded on 02.09.1991 and received banking license N4 on October 31, 1996. In August 2007, the bank was reorganized into an Open Joint-Stock Company.

On May 15, 2007, Ararat Bank terminated the placement of corporate bonds, the emission of which started on May 3. Corporate coupon bonds of Ararat Bank passed listing on the Armenian Stock Exchange by the highest Abond category.

The number of bonds issued totaled 25,000, with the circulation term of 12 months, with the nominal value of AMD 10,000 with annual yield of 8%.

As of September 30, 2007, the assets of the bank total AMD 16.4bln, capital – AMD 4.5bln, income – AMD 224.8mln. Ararat bank has 10 branches. ($1 – AMD 303.36). L.M. –0--