Ameriabank received USD 50 mln loan from World Bank Group member IFC and USD 40 mln from European Bank for Reconstruction and Development (EBRD).

The contracts were signed in Yerevan today.

The sources provided by IFC will be directed to increase the bank’s capital, and boost its capacity to lend to local enterprises, expanding access to finance and helping drive economic growth and job creation.

“Given the high quality of corporate governance and the rapid pace of growth, the subordinated debt is to promote development and allow them to prepare for an initial public offering (IPO)”, IFC stated.

EBRD investment will mainly be aimed at purchasing stakes of the bank. This deal EBRD is considered to be the largest stake acquisition transaction in the region.

As the first step the EBRD will acquire a stake of around 20 % for USD 30 mln. The remaining USD 10 mln will be used for future capital increases. The goal of the investment is to strengthen Ameriabank and prepare the bank for a future IPO.

By the way, in the course of 2016 an independent director representing the EBRD will join Ameriabank’s Board of Directors.
 
Andrew Mkrtchyan, Chairman of the Board of Directors at Ameriabank stated that this cooperation has many avenues to explore for the benefit of organizations and Armenia’s banking sector.

“We could attract half a billion USD from international institutions during these years. EBRD and IFC are absolutely key in this. Facilities , which are the logical result of effective cooperation between the two transactions . They enabled us to almost double our regulatory capital, and this unprecedented increase will pose new opportunities to expand our loan volume, which greatly contribute to the overall economic development of Armenia”, said Andrew Mkrtchyan.

The head of the Central Bank of Armenia Arthur Javadyan considers these transactions noteworthy because two major international financial institutions enter Armenia.

Tomasz Telma, IFC Director for Europe and Central Asia, said: “By providing capital support to one of our key partner banks in Armenia, we endorse its growth strategy and future plans. This cooperation is part of our efforts to increase the stability of Armenia’s banking sector, which is critical for broader economic development”.

Mark Davis, head of the EBRD office in Yerevan said that as a stake holder, EBRD will support Ameriabank in the development, particularly focusing on corporate governance.

“We are happy to become a stakeholder of the bank and we see this opportunity as another step toward strengthening the local banking sector. Improving access to finance is a key factor which will enable local companies to utilize their potential” Mark Davis concluded.