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National Mortgage Company (Armenia)


In response to the growing demand for local currency financing in Armenia, in 2017 BSTDB provided AMD 2 billion loan to the National Mortgage Company (NMC) to support the development of the mortgage market in Armenia. The BSTDB loan was funded by Bank’s debut public placement of a local currency bond. The operation will help Armenian people to access quality housing and will contribute to improved living conditions in the country. The structure of the deal also supports the development of the capital market in Armenia.

This transaction, comprising a local currency loan and a bond, with fully matching parameters and synchronized in time in order to mitigate currency and interest rate risks, was unique for BSTDB, not only for being an inaugural local currency loan in Armenia, but also a debut issue of a bond in Armenia and the first public offering of a BSTDB corporate bond in a member country.

The National Mortgage Company (NMC) is a full subsidiary of Central Bank of Armenia. Its mission is to provide liquidity, stability and affordability to the mortgage market in Armenia. NMC provides long-term funds to financial institutions engaged in mortgage financing to individuals, and integrates housing refinancing and capital markets by means of financial instruments.