The European Bank for Reconstruction and Development (EBRD) is investing $40m in Ameriabank CJSC in exchange of a 20% stake in the Armenian bank.

Ameriabank

Of the total investment, around $10m will be used for future capital increases at Ameriabank.

The investment will increase Ameriabank’s ability and prepare the bank for a future IPO. It will help Ameriabank’s growth by providing additional funds for lending to large corporate and private customers, small and medium-sized enterprises and retail customers.

Ameriabank is a universal bank that offers corporate, investment and retail banking services via both traditional and alternative, hyper-advanced banking technologies.

EBRD Yerevan office head Mark Davis said: "We welcome the opportunity to become a shareholder in Ameriabank and see this as a further step towards strengthening and consolidating the local banking sector.

"Increased access to finance is key to enabling local companies to realise their potential. As a shareholder the EBRD will support Ameriabank’s development, with a special emphasis on corporate governance."

With $200m in capital and $1bn in total assets, Ameriabank has potential for further lending as well as for participating in possible M&A transactions in the local market.

Ameriabank Board of Directors chairman Andrew Mkrtchyan said: "We highly appreciate this new level of partnership with the EBRD. It is a great support for Ameriabank in global capital markets, in line with our strategic goals and aspirations. I am sure that our joint efforts will promote the development of Armenia’s banking sector and contribute to economic growth in our country."

Ameriabank will also receive around $50m in subordinated loan from World Bank Group member IFC.

The loan will enable Ameriabank to increase its capacity to lend to local enterprises, expand access to finance and drive economic growth and job creation.


Image: AmeriaBank, Komitas branch, Yerevan. Photo: courtesy of Zyzzzzzy / Wikipedia.