YEREVAN, May 15, /ARKA/. 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 reported today.
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 capitalization 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 €393 million in 77 projects in the financial, corporate, infrastructure and energy sectors. -0-
