The Bank issues bonds to raise funds from the public for a specific period of time. We regularly pay interest as coupon to bondholders. The face value of bonds is paid at maturity.

Placement is the initial sale of bonds to investors.

Generally, investors have to buy at least one bond. The ceiling of investment is typically limited to the quantity of bonds being issued, however, the issuer can apply limits to the maximum number of bonds one investor can buy. Note that the number of bonds that can be purchased can only be expressed in integers.

Typically, a placement requires from 2 to 3 months to be completed.

Yes, however, note that bonds are sold to investors together with accrued coupons.

In order to be able to sell bonds on stock exchange, you need to have access to brokerage services. Learn more.:

The following costs are associated with sale of bonds:

• Brokerage fee: 0.1% of trade value, min. AMD 5,000
• Stock exchange fee: 0.005% of trade value

The period it takes to sell bonds depends on several factors:

• Number of bonds you want to sell
• Whether there are buyers in the market interested in that specific number of bonds

No, once the investor purchases bonds, they cannot sell them back to the issuer.

Yes, you can sell your bonds to another person.

Selling bonds on secondary market depends on several factors:

• Number of bonds you would like to sell
• Price at which you are willing to sell the bonds

Minimum daily quotation provided by market maker is 1% of total quantity of bonds of the given category.

 Yes, you can purchase bonds after maturity, if there are current placements at that time. You can also use broker services to purchase bonds on secondary market.

Yes, you can pledge bonds.

If you buy bonds during their initial offering (before they are listed on stock exchange), you can learn about prices on the official website of the Bank. After listing you can get information on the previous day’s price of bonds from your broker.

No, investors are bound to the maturity periods specified in terms of issue. However, you can sell all or some of your bonds before maturity.

Interest is paid in Armenian drams at the average exchange rate of the Central Bank of Armenia as of the day before.

No, you purchase bonds together with accrued interest.

Is it possible that I can incur losses? Listed bonds already have a market price which can differ from the price of placement. Market price can be higher or lower than the face value of bonds. Quotations are typically provided by market maker and depend on the supply and demand for bonds.

Investments in corporate bonds issued by banks are insured by the Deposit Guarantee Fund in the same way as bank deposits.

There is no fixed schedule, however, Ameriabank issues bonds fairly frequently and in this respect is the most active issuer in Armenia.

According to the Tax Code of the Republic of Armenia, interest on listed bonds owned by resident and non-resident individuals and non-resident legal entities is not taxable.

Face value of bonds

This is the value at which a bond is issued and repaid. 
E.g. AMD 100,000

Quantity of issued bonds

E.g. 50,000 bonds

Total value of issue 

Is the face value of bonds multiplied by their quantity. E.g. 100,000 * 50,000 = AMD 5,000,000,000

Maturity

The period for which bonds are issued.

E.g. 27 months

Coupon

The interest rate of bond.

E.g. 9% per annum

Coupon payment 

Interest paid to investor, calculated based on face value of bond. E.g. 100,000 * 9% = AMD 9,000

Frequency of payment

Frequency of coupon payments.

Market yield/interest rate

The interest rate change of which affects the price of bonds. During the term of placement market rate is equal to the coupon rate of bond, therefore during that term bonds are sold at face value.