Ameriabank and FMO (Netherlands Development Finance Company) have signed a USD 20mln convertible subordinated debt facility agreement.

This transaction is a good opportunity for FMO to provide capital to a leading bank in Armenia, in support of a professional management team, and thereby extend a longstanding partnership as the bank plans to leap for the next stage in its development. This facility generates development impact through the provision of long-term funding convertible into capital in support of further loan portfolio growth, with a view to opening up the institution for global capital markets anytime soon.

Considering the exceptional shareholding structure and quality of corporate governance of Ameriabank in line with a solid promising growth trend of financial results, FMO is willing to fulfill the Bank’s imminent ambitious strategic goals together with Ameriabank as a valued partner.

Ameriabank CEO, Mr. Artak Hanesyan stated “we are delighted with FMO’s trust and we do hope that our dynamic cooperation will last for years from now and the synergy will yield fruitful results to our organizations” at the official agreement signing ceremony on October 9, 2014.

Cooperation between FMO and Ameriabank dates back to 2009 by receiving of FMO’s first margin reduction for the successful implementation of an Environmental and Social Management System. Ameriabank has offered FMO the opportunity to strengthen the bank’s capital base by means of a mix of plain and convertible subordinated loan, which would allow FMO to become a shareholder in due course, and in that way to provide support en route to an IPO aspirations Ameriabank has. This transaction can be seen as a next higher level of partnership and cooperation between the two institutions.