Project detail - AMERIABANK CJSC

AMERIABANK CJSC

Status: Completed investment
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FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more

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In case of questions, please contact us at disclosure@fmo.nl

Disclaimer

The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

Ameriabank is a privately-owned bank in Armenia with a focus on the corporate and SME segments and a leading position in renewable energy. The bank's ultimate beneficiary owners are Ruben Vardanyan and his business partners. Ameriabank is an existing FMO client, and in 2010 was the recipient of FMO's first margin reduction for the successful implementation of its environmental and social management system.

What is our funding objective?

Ameriabank has offered FMO the opportunity to expand the bank's capital base by means of a partially convertible subordinated loan, which would allow FMO in due time to become a shareholder, and in that way to provide support en route to an IPO, which is foreseen in the medium-term. This transaction can be seen as the natural next step in the close relationship between the two institutions.

Why do we fund this investment?

The transaction provides a unique opportunity for FMO to provide capital to a leading bank in Armenia, in support of a well-qualified management team, and thereby extend our longstanding partnership as the bank prepares for the next stage in its development. This facility generates development impact through the provision of long-term funding that qualifies as tier-2 capital in support of further loan portfolio growth, especially in the renewable energy and SME segments, with a view to opening up the institution for public ownership in due time.

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Website customer/investment
http://www.ameriabank.am
Region
Europe & Central Asia
Country
Armenia
Sector
Financial Institutions
Effective date
9/3/2014
End date
10/29/2019
Total FMO financing
USD 20.00 MLN
Funding
FMO NV
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B