The European Bank for Reconstruction and Development (EBRD) is investing USD 40 million in the acquisition of an equity stake in Ameriabank CJSC, a leading private bank in Armenia. This is the largest single ticket equity deal the EBRD has signed in the region to date. In a first step the EBRD will acquire a stake of around 20 per cent for USD 30 million. The remaining USD 10 million will be used for future capital increases. The goal of the investment is to strengthen Ameriabank and prepare the bank for a future IPO. In the course of 2016 an independent director will join Ameriabank’s Board of Directors representing the EBRD. 

International Finance Corporation (IFC), a member of the World Bank Group, is providing a USD 50 million subordinated loan to Ameriabank, the largest bank in Armenia, to support its capital and boost its capacity to lend to local enterprises, expanding access to finance and helping drive economic growth and job creation. By providing long-term capital support, IFC aims to increase the stability of Armenia’s banking sector and support the strategic goals of Ameriabank, its valued partner. Considering the quality of Ameriabank’s corporate governance, coupled with solid growth, IFC’s subordinated loan will help the bank grow and prepare for an initial public offering.

The EBRD and IFC investment decisions reflect the Bank’s bright development outlook for Ameriabank recognizing the important contribution the bank makes to the development of the Armenian economy, banking sector and society. Ameriabank has grown steadily over years. With total capital currently close to USD 200 million, the Bank topped total assets of USD 1 billion at the end of 2015, a record mark in Armenia’s financial sector. This will open new opportunities for further lending as well as engaging in possible M&A transactions in the local market.

Bruno Balvanera, EBRD Director, Caucasus, Moldova and Belarus, 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. Increase access to finance is key to allow local companies to realise their potential. As a shareholder the EBRD will support Ameriabank’s development with a special emphasis on corporate governance”

“We highly appreciate this new level of partnership with the EBRD. This is great support to Ameriabank towards 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 will contribute to economic growth in our country”, added Andrew Mkrtchyan, Chairman of the Board of Directors at Ameriabank.

“We are confident this cooperation has many avenues to explore for the benefit of our organizations and Armenia’s banking sector.”

Tomasz Telma, IFC Director for Europe and Central Asia, said: “By providing capital support to one of our key partner banks in Armenia, we endorse its growth strategy and future plans. This cooperation is part of our efforts to increase the stability of Armenia’s banking sector, which is critical for broader economic development.”

“We are delighted with IFC’s trust. This transaction is a hallmark of quality for our bank operating in this market,” said Andrew Mkrtchyan, Chairman of the Board of Directors at Ameriabank.