BSTDB PROVIDES FIRST LOCAL CURRENCY LOAN IN ARMENIA
Press Release | 30-Jun-2017
The Black Sea
Trade and Development Bank (BSTDB) is responding to the growing demand for local
currency financing in Armenia and is offering its first loan in Armenian dram funded
by its debut public placement of the bond. BSTDB extends AMD 2 billion mortgage
refinancing facility to National Mortgage Company (NMC). The proceeds of the
loan will be used by NMC to support the development and expansion of the
mortgage market in Armenia. BSTDB is facilitating the access of the population to
quality housing and ultimately to improved living conditions. The structure of the deal will also contribute to the development of
the capital market infrastructure in Armenia.
This complex transaction,
comprised of a local currency loan and bond, with fully matching parameters and
synchronized in time to mitigate currency and interest rate risks, makes it unique
for BSTDB, not only for being an inaugural local currency loan in Armenia, but
also a debut issue of the bond in Armenia, and the first public offering of the
Bank’s corporate bond in all Member States.
“We are very
happy to close this landmark transaction, which demonstrates excellent
cooperation of our partner teams and ability to create innovative products which
the market needs. This financing will support the Armenian Government’s efforts
to accelerate growth both in the mortgage and capital markets. It is a great
privilege for BSTDB to be part of the process”, commented Igor Leshukov, BSTDB
Vice President Banking.
Hayk
Voskanyan, General Director of NMC, mentioned the following: “Working with
BSTDB has been a model experience of good teamwork in achieving the common goal
of strengthening the growing mortgage market in our country. We hope this is
just the beginning of a long and rewarding cooperation.”
* * * * * * * * * * *
National
Mortgage Company (NMC) is founded in 2009 as a
full subsidiary of Central Bank of Armenia to facilitate the development of the
mortgage market in Armenia. NMC’s main objective is to increase access to
housing finance for middle-income families to improve their living conditions.
NMC is a refinancing credit organization focused on providing long-term
liquidity to eligible banks and credit organizations engaged in mortgage
financing to the individuals, and on integrating housing refinancing and
capital markets by means of financial instruments. Its mission is to provide
liquidity, stability and affordability to mortgage market in Armenia. For more
information on NMC, visit www.nmc.am.
The Black Sea
Trade and Development Bank (BSTDB) is an
international financial institution established by Albania, Armenia,
Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and
Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic
development and regional cooperation by providing loans, credit lines, equity
and guarantees for projects and trade financing in the public and
private sectors in its member countries. The authorized capital of the Bank is
EUR 3.45 billion. BSTDB is rated long-term “A-” by Standard and Poor’s and “A2”
by Moody’s. For information on BSTDB, visit www.bstdb.org.
Press contact:
Haroula
Christodoulou
Phone:
+30 2310 290533
E-mail:
cchristodoulou@bstdb.org