Ameriabank Equity Investment

Location:

Armenia

Project number:

47265

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

09 Dec 2015

Status:

Disbursing

PSD disclosed:

22 Dec 2015

Translated version of this PSD: Armenian

Project Description

The project is an equity investment of USD 40 mln (c. AMD 20 bln equivalent) for the subscription to the newly issued shares of Ameriabank CJSC, one of the leading private Armenian banks. The investment is structured in two stages: USD 30 mln (c. AMD 15 bln equivalent) is invested initially to obtain c. 20.6% stake of the bank's capital and voting rights and further USD 10 mln will be used for future capital increases.

Project Objectives

The operation will support Ameriabank's capitalisation and facilitate achieving its strategic growth targets with ultimate aim of achieving an IPO. The bank will have an increased capability to provide financing to SMEs, large local corporates and individuals combined with better services and more sophisticated products and solutions, resulting in an increase in financial intermediation in the country and improved access to finance. Supporting the bank's M&A activities will assist in consolidation and strengthening of the fragmented banking sector.

Transition Impact

Transition impact will come from facilitating Ameriabank's pre-IPO growth plans, which would support market expansion and increased financial intermediation in Armenia. EBRD will also contribute to improving corporate governance through the nomination of an EBRD representative to the Board and implementation of a pre-IPO Corporate Governance Action Plan.

Client Information

AMERIABANK CJSC

Ameriabank is one of the leading banks in Armenia and is the largest by assets and client deposits, with, respectively c. 11% and 13.5% market share at YE2014. The bank has been EBRD client since 2010 and received EBRD funding through Trade Facilitation Facility (TFP), SME and energy efficiency credit lines.

EBRD Finance Summary

USD 40,000,000.00

USD 40,000,000.00 with initial investment of USD30,000,000.00

Total Project Cost

USD 55,000,000.00


Equity investment of USD40 million by EBRD and potential USD15 million investment from private equity

Environmental and Social Summary

Categorised FI (ESP 2014). Ameriabank is an existing EBRD client and has environmental and social procedures in place that are compliant with EBRD's Performance Requirements, and he bank submits satisfactory annual environmental and social reporting. Ameriabank will need to review their procedures to ensure their ongoing compliance with EBRD Performance Requirements 2, 4 and 9 and provide required environmental and social risk management training to all credit officers, especially newly-hired and regional branches personnel. It will need to apply EBRD Performance Requirements 9 to the entire lending portfolio.

Technical Cooperation

Between 2010 and 2012 EBRD has played an active part in the improvement of Ameriabank's institutional capacity through technical cooperation support as part of Credit Advisory Services and Institutional Building programme funded by ETC Multi-donor Fund. The consultancy focused on hands-on training of SME loan officers and other staff across the bank, strengthening and improving methodologies, risk policies and procedures, increasing efficiency of other corresponding procedures and providing environmental training resulting in establishing environmental procedures and practices in the bank. The bank has also benefitted from technical cooperation in support of the Bank's Trade Finance Programme and Energy Efficiency Framework.

Company Contact Information

(374 10) 56 11 11
(374 10) 51 31 33
(374 10) 51 31 33

Ameriabank CJSC 9 Grigor Lusavorich str., Yerevan 0015, Armenia

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