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EBRD TO INVEST IN ARMENIA'S ARARATBANK
ArmInfo
2008-10-29 23:25:00
ArmInfo. The European Bank for Reconstruction and Development (EBRD)
is acquiring 25% + 1 share stake in AraratBank, a privately owned
Armenian bank, to support its plans for further expansion.
EBRD Director for Caucasus, Moldova & Belarus Mike Davey, Chairman of
the Board and majority shareholder of AraratBank Barsegh Beglaryan
and the bank's CEO Ashot Osipyan have agreed today that EBRD will
purchase the stake for $7mln.
EBRD's investment will provide a strategic guidance through its Board
nominee, strengthen the bank's internal policies and procedures,
corporate governance and existing management structure. It will also
support the development of AraratBank's retail, medium, small and
micro-finance lending programs. Growth will be achieved by attracting
new customers through diversification of its products range, increasing
regional branch network and further improving its service culture.
EBRD & AraratBank have been partners since Nov 2007, when EBRD extended
$5mln credit-line for lending to Micro, Small and Medium Enterprises
and $1mln limit for trade financing.
AraratBank, previously called Haykap Bank, was founded in 1991 by
a number of organizations operating in the communications sector in
Armenia. In 2004, following the implementation of a financial recovery
program, Haykap Bank was purchased by Flash Ltd., owned and managed
by Barsegh Baglaryan, a prominent Armenian businessman. In Sept 2005,
the bank was renamed AraratBank. AraratBank provides a full range of
banking services to corporate, MSME and retail customers. The bank
is rapidly establishing an image as a small but reliable, reputable
and dynamically growing financial institution.
As a result of the purchase the authorized capital of AraratBank
will amount to $24mln. In the next three years the bank's capital is
supposed to be increased to $50mln.
Ashot Osipyan, the CEO of AraratBank said: "I am delighted to work
with EBRD, and am proud to consider that the hard work for the past
two years has paid off. AraratBank is one of the leading banks in
Armenia with a strong reputation and a loyal customer base. I feel
assured that with EBRD's expertise we can further improve our bank's
operations to benefit our stakeholders, clients, employees, society
and the economy of the country."
Mike Davey, EBRD Director for Caucasus, Moldova & Belarus added:
"We hope our support will further enhance AraratBank's competitive
position, increasing bank's attractiveness to a potential strategic
investor."
EBRD is one of the largest investors in Armenia, having committed
more than 202mln EUR in 52 projects.
It also has stakes in Armeconombank (25%+1), ProCredit Bank (16.67%)
and Byblos Bank Armenia (25%).
ArmInfo
2008-10-29 23:25:00
ArmInfo. The European Bank for Reconstruction and Development (EBRD)
is acquiring 25% + 1 share stake in AraratBank, a privately owned
Armenian bank, to support its plans for further expansion.
EBRD Director for Caucasus, Moldova & Belarus Mike Davey, Chairman of
the Board and majority shareholder of AraratBank Barsegh Beglaryan
and the bank's CEO Ashot Osipyan have agreed today that EBRD will
purchase the stake for $7mln.
EBRD's investment will provide a strategic guidance through its Board
nominee, strengthen the bank's internal policies and procedures,
corporate governance and existing management structure. It will also
support the development of AraratBank's retail, medium, small and
micro-finance lending programs. Growth will be achieved by attracting
new customers through diversification of its products range, increasing
regional branch network and further improving its service culture.
EBRD & AraratBank have been partners since Nov 2007, when EBRD extended
$5mln credit-line for lending to Micro, Small and Medium Enterprises
and $1mln limit for trade financing.
AraratBank, previously called Haykap Bank, was founded in 1991 by
a number of organizations operating in the communications sector in
Armenia. In 2004, following the implementation of a financial recovery
program, Haykap Bank was purchased by Flash Ltd., owned and managed
by Barsegh Baglaryan, a prominent Armenian businessman. In Sept 2005,
the bank was renamed AraratBank. AraratBank provides a full range of
banking services to corporate, MSME and retail customers. The bank
is rapidly establishing an image as a small but reliable, reputable
and dynamically growing financial institution.
As a result of the purchase the authorized capital of AraratBank
will amount to $24mln. In the next three years the bank's capital is
supposed to be increased to $50mln.
Ashot Osipyan, the CEO of AraratBank said: "I am delighted to work
with EBRD, and am proud to consider that the hard work for the past
two years has paid off. AraratBank is one of the leading banks in
Armenia with a strong reputation and a loyal customer base. I feel
assured that with EBRD's expertise we can further improve our bank's
operations to benefit our stakeholders, clients, employees, society
and the economy of the country."
Mike Davey, EBRD Director for Caucasus, Moldova & Belarus added:
"We hope our support will further enhance AraratBank's competitive
position, increasing bank's attractiveness to a potential strategic
investor."
EBRD is one of the largest investors in Armenia, having committed
more than 202mln EUR in 52 projects.
It also has stakes in Armeconombank (25%+1), ProCredit Bank (16.67%)
and Byblos Bank Armenia (25%).