FMO has signed a signed a USD 20mln convertible subordinated debt facility agreement with Ameriabank in Armenia. 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.
About FMO
FMO (Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes that a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 6.6 billion, FMO is one of the largest European bilateral private sector development banks. For more information, please visit: www.fmo.nl
About Ameriabank
Ameria Group is one of the first and most dynamically growing financial institutions in the local market offering a range of financial and advisory services. Ameria Group renders comprehensive financial services to clients representing almost all the sectors of economy in Armenia with key areas being: financial services, management advisory, financial and legal advisory, investment banking, asset management, private equity and property development services. Ameria Group has more than 580 employees, around USD 842 million dollars in assets, branches across the country and a representation in the United States. Ameriabank became a champion by growth rates within six years of operations acquiring top market position among its peers. Having multiple international financial awards by Euromoney (2014, 2012, 2011), Global Finance (2012, 2013), The Banker and FT (2010, 2013), Ameriabank is the first bank among 21 banks of Armenia by assets and liabilities and second by net profit. For more details, please visit www.ameriagroup.am.
