The European Bank for Reconstruction and Development (EBRD) is investing USD 40 million in order to acquire the shares of "Ameriabank" CJSC. "Ameriabank" is one of the leading private banks in Armenia. This transaction is the largest equity acquisition transaction signed by EBRD in this region to date.
In the first phase, EBRD will acquire about 20 percent of the shares for USD 30 million. The remaining USD 10 million will be used for further capital raising. The purpose of the investment is to strengthen Ameriabank and prepare it for an initial public offering (IPO) in the future. 2016 An independent director representing EBRD will join the board of directors of Ameriabank.
EBRD's investment ahead of a possible listing will support Ameriabank's growth by providing additional financial resources for lending to large corporate and private clients, small and medium enterprises and retail clients. The increase in lending to the real sector of the economy will contribute to the strengthening of Armenia's economic growth.
"Ameriabank" has registered steady growth over the years. The bank's total regulatory capital is currently approximately $200 million. Total assets amounted to 1 billion. USD in 2015 in the end, which is a record indicator for the financial sector of Armenia. This will provide new opportunities for further lending, as well as participation in potential mergers and acquisitions in the local market.
EBRD's decision to become a shareholder of "Ameriabank" indicates the bright prospects that EBRD sees for "Ameriabank" and recognizes the important contribution that the latter has in the development process of the country's economy, banking sector and society.
Mark Davies, head of the Yerevan office of the European Bank for Reconstruction and Development, said: "We are happy to become a shareholder of Ameriabank and see this opportunity as another step towards strengthening the local banking sector. Improving access to finance is a critical factor in enabling local companies to realize their potential. As a shareholder, the EBRD will support the development of Ameriabank, focusing particularly on corporate governance.
"We highly appreciate this new level of cooperation with EBRD. This is a great support for Ameriabank in moving towards global capital markets in line with our strategic goals and aspirations. I am confident that our joint efforts will contribute to the growth of the Armenian banking sector and the economy of our country," said Andrey Mkrtchyan, Chairman of the Board of Directors of Ameriabank.
1992 Since the beginning of its operations in Armenia, the EBRD has invested more than 1.04 million euros in 148 projects in the financial and corporate sectors, as well as in the infrastructure and energy sectors of Armenia. 88 percent of investments were made in the private sector.