EBRD PARTICIPATES IN CAPITAL INCREASE OF ARARATBANK, ARMENIA
The Financial
ks/63546_EBRD_participates_in_capital_increase_of_ Araratbank,_Armenia_/
May 14 2010
Georgia
The FINANCIAL — The EBRD is increasing its capital in ARARATBANK,
a privately-owned Armenian bank, by up to 255 million Armenian Dram
(AMD) (approximately $600,000), through a subscription to new shares.
ARARATBANK provides a full range of banking services, focusing
primarily on micro, small and medium-sized enterprises and retail
clients.
The EBRD’s investment is part of ARARATBANK’s capital increase of AMD
1 billion (approximately $2.4 million), which will support the bank’s
further expansion. The EBRD’s stake will remain at 25 per cent plus
one share.
According to EBRD, the capital increase will enable ARARATBANK to
diversify its loan portfolio and expand its client base by servicing
medium and large businesses, as well as to expand its branch network.
In addition, the enhanced capitalisation will allow ARARATBANK to
attract local currency financing from the Central Bank of Armenia,
which will help the bank to increase its local currency lending.
"The EBRD is pleased to continue its collaboration with ARARATBANK
and to support further development of the bank. The capital increase
will allow ARARATBANK to maintain its ranking in the banking system
and diversify its range of financial products," said Nick Tesseyman,
EBRD Managing Director for Financial Institutions.
"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 ARARATBANK to be among Armenian leading banks and provide full
spectrum of financial services correspondent to European banking
standards", said Ashot Osipyan, Chairman of the Executive Board and
CEO of ARARATBANK.
The EBRD became a shareholder of ARARATBANK in 2008. Previously the
Bank provided ARARATBANK with a $5 million credit line for micro, small
and medium-sized enterprises, $2 million under the Bank’s Medium-Sized
Co-financing Facility Framework for provision of corporate loans to
medium and large-sized enterprises, and a $2 million trade finance
facility.
Since the beginning of its operations in Armenia, the EBRD has
committed over â~B¬393 million in 77 projects in the financial,
corporate, infrastructure and energy sectors.