Converse Bank has completed the placement of the first tranche of dollar bonds.
The bonds were purchased by private investors and legal entities, according to a press release. Eighty-seven percent of the offering went to private investors, with 13 percent going to various legal entities.
A dollar bond is a security that generally trades outside of the United States. The principal and coupon payments are paid in U.S. dollars.
Sixty thousand coupons bonds were placed in the offering with a total value of $6 million. The value of a singular bond is $100, with an annual coupon yield of 5.75 percent, the release states.
The bank said the bonds are guaranteed by the Guarantee Fund for Banking Deposits of Private Individuals.
Servicing of the bonds after placement will fall to the "Capital Investments" CJSC, which will also act as a market maker. The CI CJSC is a licensee of the Central Bank of Armenia that specializes in securities aftermarket activities.
Converse is a 20-year-old financial institution that offers a variety of financial services, including business and mortgage lending to both individuals and businesses, the release states.