European Bank for Reconstruction and Development (EBRD) has increased its capital in Ararat Bank, a privately-owned Armenian bank, by up to AMD255m, through a subscription to new shares.
The EBRD’s investment is part of Ararat Bank’s capital increase of AMD1bn, which will support the bank’s further expansion. The EBRD’s stake will remain at 25% plus one share. Ararat Bank provides a full range of banking services, focusing primarily on micro, small and medium-sized enterprises and retail clients.
The capital increase is expected to enable Ararat Bank to diversify its loan portfolio and expand its client base by servicing medium and large businesses, as well as to expand its branch network.
Nick Tesseyman, managing director for financial institutions at EBRD, said: “The EBRD is pleased to continue its collaboration with Ararat Bank and to support further development of the bank. The capital increase will allow Ararat Bank to maintain its ranking in the banking system and diversify its range of financial products.”
Ashot Osipyan, chairman of the executive board and CEO of Ararat Bank, said: “We highly appreciate our cooperation with the EBRD considering it as a guarantee of introduction and implementation of modern banking and financial technologies and best international practice. These allow Ararat Bank to be among Armenian leading banks and provide full spectrum of financial services correspondent to European banking standards.”