Swiss based company “MFM Global Invest Ltd” (itself owned by an investment fund) has become the new shareholder of 74․998% of Armbusinessbank’s shares. This coincides with the changes taken place in the overall shareholder structure of “ARMBUSINESSBANK” CJSC at the beginning of March 2022 which increased the bank’s share capital in total by AMD 128 bln (about USD 251 mln).

“MFM Global Invest Ltd” participated with AMD 96 bln (about USD 188 mln) in the capital increase while “Home for youth” RCO CJSC also participated in the capital increase with AMD 32 bln (about USD 63 mln), thus itself becoming a shareholder of the bank with 25 % plus one share.

“The capital increase by a total of AMD 128 bln will enable Armbusinessbank not only to maintain and strengthen its leading position in the Armenian banking system but will also support the bank to implement its new development plans for an enhanced and attractive product offering, particularly digital and innovative products, as well as further intensified financing in mortgage products and construction business in Armenia. Based on the structural changes in strategy and new development vision, the bank will be well prepared to master upcoming challenges and will turn these challenges into opportunities.” the bank said in a statement.

The share capital of “ARMBUSINESSBANK” CJSC now stands at about AMD 170 bln.

The newly formed Supervisory Board of the bank consists of experienced and highly reputable bankers and experts from Switzerland and Armenia, whose many years of experience will enable to ensure a continuous development and sustainable growth of the bank. The Supervisory Board will be chaired by Alfred W. Moeckli, Swiss citizen, with a long and successful international banking career.

These changes will have significant importance for both the bank and the financial sector of Armenia, taking into account the fresh institutional participation of two strong shareholders.

“The participation of a Swiss Fund and the State Fund of Armenia in the bank’s shareholders’ structure will significantly accelerate the transformation and implementation of an internationally minded business and governance structure, typical for western financial and banking systems. It will also increase banking competition through the use of advanced technologies in the field of financial innovations.

Armbusinessbank will continue to be faithful to its mission and will contribute to the development of our country’s economy by financing and providing high quality banking services to the businesses operating in the territory of Armenia and its entire population.

Thus begins a new era in the history of Armbusinessbank, one of the oldest Armenian banks, which entered the financial system during the first years of independence of the Republic of Armenia and gained its unique stable position in the local financial market.  
 
Armbusinessbank is confident that with new capital strength, new spirit and enthusiasm will make history both with its existing loyal and potential future customers and partners, bringing new positive changes to the local banking industry,” Armbusinessbank’s statement reads.

Armbusinessbank is regulated by the Central Bank of Armenia.