The European Bank for Reconstruction and Development (EBRD) will invest USD 40 mln (approximately AMD 20 bln) in Ameriabank for the subscription to the newly issued shares of Ameriabank CJSC.

According to  EBRD official website, the investment is structured in two stages: USD 30 mln (AMD 15 bln equivalent) is invested initially to obtain c. 20.6% stake of the bank's capital and voting rights and further USD 10 mln will be used for future capital increases.

“The operation will support Ameriabank's capitalization and facilitate achieving its strategic growth targets with ultimate aim of achieving an IPO. The bank will have an increased capability to provide financing to SMEs, large local corporates and individuals combined with better services and more sophisticated products and solutions, resulting in an increase in financial intermediation in the country and improved access to finance”, the website says.

EBRD hopes that Ameriabank will assist in consolidation and strengthening of the fragmented banking sector.

At the same time, EBRD will improve the corporate management by nominating an EBRD representative in the board of Ameriabank, as well as by implementation of corporate management project prior to IPO.