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IFC Announces its First Equity Investment in an Armenian Bank
International Finance Corporation (IFC)
http://www.ifc.org/
July 18 2006
The International Finance Corporation, the private sector arm of the
World Bank group, has agreed to buy a 10 percent stake in Inecobank
of Armenia. This is IFC's first equity investment in an Armenian bank.
In June, IFC announced it will provide Inecobank with a $3 million
senior loan to grow its small and medium enterprise and residential
mortgage portfolios.
Edward Nassim, IFC's director of Central and Eastern Europe, said,
"We are pleased to begin our partnership with Inecobank. With IFC's
financing, the bank will substantially expand its mortgages financing
program, which will play an important role in raising living standards
of Armenian citizens."
Armenia became an IFC member in 1995. The Corporation began investing
in the country in 2000. As of July 2006, IFC has invested $17.29
million in five projects. IFC continues to explore the investment
opportunities in partnership with strategic investors in both
the financial and real sectors of the country. In addition to the
investment program, IFC has been providing advisory services on
corporate governance, improvement of the investment climate, and
small and medium enterprise development.
About Inecobank Inecobank is one of the 10 largest Armenian banks
by equity and assets with a market share of about 4 percent. The
bank had net worth of approximately $12 million and total assets of
approximately $40 million equivalent as of the end of 2005. It owns
a network of six commercial offices in Yerevan as well as in the
main Armenian regions (Shirak, Lori, and Armavir). Today the bank
focuses on serving small and medium enterprises and retail clients,
especially in consumer financing, where the bank has been a pioneer
and still is the market leader.
About IFC The mission of IFC, part of the World Bank Group, is to
promote sustainable private sector investment in developing countries
as a way to reduce poverty and improve people's lives. IFC finances
private sector investments in emerging markets, mobilizes capital
in the international financial markets, helps clients improve social
and environmental sustainability, and provides technical assistance
and advice to governments and businesses. From its founding in 1956
through FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies
in 140 developing countries. For more information, visit www.ifc.org.
International Finance Corporation (IFC)
http://www.ifc.org/
July 18 2006
The International Finance Corporation, the private sector arm of the
World Bank group, has agreed to buy a 10 percent stake in Inecobank
of Armenia. This is IFC's first equity investment in an Armenian bank.
In June, IFC announced it will provide Inecobank with a $3 million
senior loan to grow its small and medium enterprise and residential
mortgage portfolios.
Edward Nassim, IFC's director of Central and Eastern Europe, said,
"We are pleased to begin our partnership with Inecobank. With IFC's
financing, the bank will substantially expand its mortgages financing
program, which will play an important role in raising living standards
of Armenian citizens."
Armenia became an IFC member in 1995. The Corporation began investing
in the country in 2000. As of July 2006, IFC has invested $17.29
million in five projects. IFC continues to explore the investment
opportunities in partnership with strategic investors in both
the financial and real sectors of the country. In addition to the
investment program, IFC has been providing advisory services on
corporate governance, improvement of the investment climate, and
small and medium enterprise development.
About Inecobank Inecobank is one of the 10 largest Armenian banks
by equity and assets with a market share of about 4 percent. The
bank had net worth of approximately $12 million and total assets of
approximately $40 million equivalent as of the end of 2005. It owns
a network of six commercial offices in Yerevan as well as in the
main Armenian regions (Shirak, Lori, and Armavir). Today the bank
focuses on serving small and medium enterprises and retail clients,
especially in consumer financing, where the bank has been a pioneer
and still is the market leader.
About IFC The mission of IFC, part of the World Bank Group, is to
promote sustainable private sector investment in developing countries
as a way to reduce poverty and improve people's lives. IFC finances
private sector investments in emerging markets, mobilizes capital
in the international financial markets, helps clients improve social
and environmental sustainability, and provides technical assistance
and advice to governments and businesses. From its founding in 1956
through FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies
in 140 developing countries. For more information, visit www.ifc.org.