IFC issues $50 mln loan to boost Ameriabank’s lending capacity

PanARMENIAN.Net - IFC, a member of the World Bank Group, is providing a $50 million subordinated loan to Ameriabank, the largest bank in Armenia, to support its capital and boost its capacity to lend to local enterprises, expanding access to finance and helping drive economic growth and job creation.

Armenia became an IFC member in 1995. Since then, IFC’s long-term investment commitments have totaled $340 million, including $22.8 million mobilized from other lenders, financing 47 projects across a range of sectors, including financial markets, manufacturing, agribusiness, services, and mining. IFC has also supported trade transactions worth over $122 million through its trade finance program, and implemented advisory projects focused on private sector development.

By providing long-term capital support, IFC aims to increase the stability of Armenia’s banking sector and support the strategic goals of Ameriabank, its valued partner. Considering the quality of Ameriabank’s corporate governance, coupled with solid growth, IFC’s subordinated loan will help the bank grow and prepare for an initial public offering.

“We are delighted with IFC’s trust. This transaction is a hallmark of quality for our bank operating in this market,” said Andrew Mkrtchyan, Chairman of the Board of Directors at Ameriabank. “We are confident this cooperation has many avenues to explore for the benefit of our organizations and Armenia’s banking sector.”

Tomasz Telma, IFC Director for Europe and Central Asia, said: “By providing capital support to one of our key partner banks in Armenia, we endorse its growth strategy and future plans. This cooperation is part of our efforts to increase the stability of Armenia’s banking sector, which is critical for broader economic development.”

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, is uses its capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, IFC’s long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity.

As an absolute leader in the market by assets, loans, liabilities and deposits, Ameriabank provides full-fledged solutions in corporate, retail and investment banking. Having multiple excellency awards by Euromoney (2014, 2012, 2011), Global Finance (2015, 2012, 2013), The Banker/FT (2015, 2013, 2010), Ameriabank is committed to invest in cutting-edge technologies and unparalleled customer service.