Ameriabank, FMO sign convertible subordinated debt facility agreement

PanARMENIAN.Net - Ameriabank cjsc and the Netherlands development Finance Company (FMO) signed Thursday, Oct 9, a USD 20mln convertible subordinated debt facility agreement.

For the first time since the formation of the Armenian banking system, a convertible subordinated debt facility agreement has been signed between an international financial institution and an Armenian bank, the fact symbolizing international investor’s increasing trust in the local banking sector.

“Ameriabank is one of the major players in the Armenian banking system, which has always been remarkable for high growth rate,” RA Central Bank chairman Nerses Yeritsyan said.

Cooperation between FMO and Ameriabank dates back to 2009, when the bank received FMO’s first margin reduction for the successful implementation of an Environmental and Social Management System.

Ameriabank has offered FMO an 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 upon conversion and pave the way towards global capital markets in the mid-term perspective.

“We are delighted to have FMO’s trust and do hope that our dynamic cooperation will last for years, with the synergy yielding proper results for our organizations and the Armenian banking sector in general,” Ameriabank CEO Artak Hanesyan said, adding that the sum will help increase the bank’s loan portfolio by USD100mln.

FMO has signed the agreement to support the bank’s imminent strategic goal as its valued partner. This facility generates development impact through the provision of long-term funding convertible into capital in support of further loan portfolio growth.

“We are proud of our successful partnership with Ameriabank and look forward to keep working with them on developing the Armenian banking sector in a responsible and sustainable way,” commented FMO CEO Nanno Kleiterp.