Evocabank is preparing to issue nominal, coupon-bearing, dematerialized, non-redeemable and non-convertible bonds. In total, the bank will place 1,500,000 dram-denominated bonds, 150,000 dollar-denominated bonds and 50,000 euro-denominated bonds, with coupons paid on a quarterly basis.
The nominal value of one dram bond is 10,000 Armenian drams, the dollar bond is 100 US dollars, and the euro bond is 100 euros. According to the bank, the bonds are in-demand and profitable financial instruments that are secure, high-yield and offer a number of advantages.
Evocabank bonds can be purchased online through the EvocaTOUCH app or by visiting any branch of the bank.
The tax exemption issue is also important: the income tax exemption on interest income from bonds applies to income received through December 31, 2027 inclusive, in accordance with Article 149, Part 1, Point 6 of the RA Tax Code.
The structure of the issue itself is interesting: the bank is simultaneously entering the market in three currencies – dram, dollar and euro – and this suggests that the calculation is aimed at investors with different profiles, not only those who keep their savings in drams. The nominal value of the dollar and euro bonds is relatively low – 100 each – which makes them accessible also to those starting with small amounts.
A noteworthy detail is the tax exemption. It applies to income received through December 31, 2027 inclusive, meaning the period is limited, and this may affect the calculation of the investor's net income from the issue.
How competitive this offer is compared to deposits and other instruments depends on the coupon interest rate, which is not yet specified under the announced terms. That is the number that will ultimately determine the investor's decision.
