Ucom Bonds ․ The first corporate bonds in the field of telecommunications in Armenia

In this article we will try to understand what a bond և is compared to a bank deposit, what is its advantage? First of all, let’s say that these are documents reminiscent of a receipt-contract, which are available to everyone. For example, if a company wants to invest in a project and decides to issue bonds, the buyer actually becomes the sponsor of the project.

This procedure is very similar to a bank deposit transaction, but with a more flexible version. What is the advantage of bonds, you ask? If we compare it with a bank deposit, the bonds can be sold at any time, while the bank deposit presupposes a specific period during which the amount can not be withdrawn from the bank. In case of selling the bonds, the interest rates accumulated before are not zero. In addition, the interest rate on the bonds is higher than the bank deposit. For example, in 2019, the average interest rate on dollar deposits in banks was 4.5%, and on Ucom bonds – 7.5%, at the same time it was possible to invest AMD deposits at an average of 9.55% compared to 11% of Ucom bonds.

“Three years ago, a decision was made to issue bonds to diversify Ucom’s financial flows, as a result of which, in particular, we upgraded our fixed network and won the” Fastest Fixed Network 2021 in Armenia “award by Ookla, the world leader in internet testing and analysis. “We thank all the people who trusted us and got our bonds,” said Ucom CEO Ara Khachatryan.

It should be reminded that in 2019 the volume of bonds issued by “Ucom” company made 5 million US dollars with 7.5% annual yield և 250 million AMD with 11% annual yield.