22Jan
IFC allocated $50 million to "Ameriabank" CJSC in order to increase the bank's capital and expand access to financial resources.
January 21, 2016, Yerevan. The International Finance Corporation (IFC), a member of the World Bank Group, provided a subordinated loan of USD 50 million to Ameriabank CJSC, the largest bank in Armenia, in order to increase its capital, expand crediting opportunities and access to financing for economic entities of the country, and promote economic growth and job creation.
By providing long-term capital, IFC aims to strengthen the stability of Armenia's banking sector and support the strategic goals of Ameriabank, its valued partner. Given the high quality of Ameriabank's corporate governance system and rapid growth rates, the subordinated loan provided by IFC will support the bank's development and allow it to prepare for an initial public offering (IPO).
Andrey Mkrtchyan, Chairman of the Board of Directors of "Ameriabank" CJSC, noted on this occasion. "It is a great honor for us to enjoy the trust of IFC. This transaction represents a completely new level of quality for our bank in this market. We are sure that this cooperation will create many new opportunities for our organizations and the banking sector of Armenia."
IFC Central and Eastern Europe Regional Director Tomas Thelma added. "By providing capital funds to one of our main partner banks in Armenia, we support the implementation of its development strategy and prospective plans. This partnership is one of our initiatives aimed at increasing the stability of the banking sector of Armenia, which is of crucial importance for the overall economic development."
Armenia joined the IFC in 1995. During that period, IFC's long-term investment commitments totaled US$233 million, including US$22.8 million mobilized from other lenders. Within that amount, IFC financed 42 projects in a variety of sectors, including financial markets, manufacturing, agriculture, services and mining. Through its trade finance program, IFC has also supported more than $122 million worth of trade transactions. IFC has also implemented consulting programs aimed at the development of the private sector