Unibank’s USD bonds listed on Moscow Exchange
For the first time in the history of the Armenian Banking, “Unibank” OJSC has undertaken a secondary listing of bonds in Russia. The tenth tranche of Unibank’s coupon bonds with an annual yield of 5.25% has been included on the third listing level of Moscow Exchange. Trading starts on August 4, 2020; ISIN – AMUNIBB2AER2.
Unibank made a decision on a listing in Russia, taking the high level of Russian investors’ interest in the Bank’s dollar bonds into consideration. The secondary listing on Moscow Exchange will give Russian investors an opportunity to acquire bonds issued by an Armenian bank in a simplified method- without opening a bank account and securities account in Armenia. It is enough for the buyer in Russia to have an account with the National Settlement Depository or with a Custodian.
“The Moscow Exchange is actively developing relations with market participants in the EEU countries, confirming the status of a regional investment center. Among the securities circulating on the Moscow Exchange are Belarusian government and corporate bonds, securities of Kazakhstani issuers. Thanks to the secondary listing, Unibank will get Russian investors acquainted with its securities, which may in the future allow to offer initial placement of bonds to expand its client base. Investors, in their stead, receive a new financial instrument and diversification of their investments”, said Anna Vasilenko, Managing Director for Issuers at the Moscow Exchange.
The primary listing had already taken place on the Armenian AMX Stock Exchange. Term to Bond Maturity is 36 months. Coupon yield on the bonds will be paid quarterly. You can get more information about the detailed conditions of issuance and bond prospectus here.
“Our bonds call for a significant interest in wide circles of investors abroad, as well. This is an instrument, ideally matching for low-risk investments. Unibank initiated this project and, together with the Exchanges of Russia and Armenia, undertook an enormous job, thereby expanding the prospects for the development of the capital market and increasing the volume of investments. We are sure, that our bonds will meet Russian investors’ requirements and this profitable offer will be made use of by a great number of people wishing to save or increase their funds, as Unibank’s bonds are trustworthy, profitable and with high liquidity”, commented Mesrop Hakobyan, CEO of Unibank.
“This is a historic event for the Armenian capital market. For the first time, securities that have passed the listing procedure on the Armenian Stock Exchange have also passed the listing on a foreign stock exchange. On the eve of the formation of a single financial market in the Eurasian Economic Union in 2025, the Armenian Stock Exchange and the Central Securities Depository of Armenia, as a result of active cooperation with the interested participants in the capital market, created an opportunity to increase the recognition of issuing companies at the international level, soar the turnover of securities, and also attract investments from the Russian market through cross-listing. We hope that the other members of the Armenian Stock Exchange will also take advantage of this opportunity,” said Hayk Yeganyan, CEO of the Armenian Stock Exchange.
Unibank’s Securities may be acquired by both Physical Persons and Legal Entities. The maintenance of prices for the purchase and sale of bonds will be handled by GX2 Invest, which is part of the international investment and industrial group GX2.
“There are very few dollar bonds with good profitability in the Russian Market available to retail investors. Now, the majority of the Russian investors have the possibility to purchase Unibank’s bonds directly at Moscow Exchange- as the nominal value of one bond is only USD 100. We are very glad, that Unibank, being a leader in the Armenian banking system, has entrusted us to maintain its quotes”, – mentioned Irakliy Kiriya , CEO of “GX2 Invest”.
Physical Persons’ and Legal Entities’ interest in the given investment tool is also conditioned by Unibank’s reputation, which is one of the leaders of the Armenian retail banking. Every third of working population of Armenia is Unibank’s client. By the number of POS loans Unibank was the leader in the Armenian banking system in the fourth trimester of 2019.
Unibank was the first in Armenia to have implemented IPO in 2015 and listed its bonds on the National Stock Exchange. The International Moody’s Investors Service rating agency provided Unibank with a B2 level rating, with a “stable” outlook.
Nowadays, the Bank’s service network covers 51 branches and more than 100 promo points in different cities of Armenia. The main spheres of activity are retail crediting, supporting SMEs, as well as VIP services, such as Private Banking. Unibank Privé was awarded as the “Best client service provider in private banking in the CIS countries” at SPEAR’S Russia Wealth Management Awards 2018.
Find more information at www.unibank.am
