FINCA Armenia Issues Multi-Denominational Bond Offering

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Jun 2017
Armenia, June, 05 2017 - FINCA Armenia announced the issuance of its first nominal, non-documentary, coupon bonds, furthering its strategy of diversifying its funding base to promote financial inclusion.

After placement, both tranches were listed and admitted for trading in NASDAQ OMX Armenia secondary list of bonds (Bbond). It was also admitted to execute repo transactions with FINCA bonds. Since the listing, 21 trading transactions in the amount of USD 668,000 and one repo transaction in USD 500,000 have been executed with FINCA bonds on the secondary market.

FINCA's bond offerings are attracting worldwide attention and interest from the investment community, including the recent offering from FINCA's Nicaragua subsidiary. FINCA Impact Finance (FIF), which operates 21 banks and microfinance institutions across the world, is diversifying its sources of funding and will use the proceeds of these bonds to broaden its financial products and services.

FINCA Armenia has operated in Armenia for more than 17 years and has become one of the leading microfinance institutions in the country, serving 42,000 clients through 38 branches. This new funding source has the potential to make a positive contribution to the Armenian economy, enabling FINCA to invest in products, channels and technological innovations.

Andrée Simon, CEO of FINCA Impact Finance, said, "The success of this bond offering is a clear testament to FINCA's robust financial performance and strong commitment to expand access to responsible financial services in Armenia and around the world."

Roman Hingorani, CFO for FINCA Impact Finance, said, "We are changing FINCA's direction by diversifying our funding base from a heavy reliance on international borrowings to more local funding sources. This will help us manage our foreign exchange and geographic risks. For customers around the globe, this reinforces our role as a reliable banking partner."



Source : PR Newswire
 

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