MICROCAPITAL BRIEF: Dutch Development Bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) Loans $20m to Armenia’s Ameriabank

The Dutch development bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) recently agreed to loan USD 20 million to Ameriabank Closed Joint Stock Company (CJSC) (Ameriabank), a commercial bank in Armenia. The purpose of the loan is “to expand the bank’s capital base by means of a partially convertible subordinated loan”[1]. In effect, it may allow the FMO to become a shareholder and support a possible future initial public offering.

Ameriabank is a privately owned financial institution that focuses on funding the work of corporates and small and medium-sized enterprises (SMEs), including renewable energy projects. In 2009, FMO and the German development finance institution Deutsche Investitions- und Entwicklungsgesellschaft (DEG) jointly funded a long-term loan of USD 30 million to Ameriabank. In 2010, Ameriabank benefitted from a “margin reduction [on this loan] for the successful implementation of its environmental and social management system”[1].

As of December 31, 2013, Ameriabank reported total assets of USD 777 million, return of average assets (ROAA) of 2 percent and return of average equity (ROAE) of 16.1 percent. FMO is majority-owned by the Dutch government, with commercial banks, trade unions, employers’ associations and individual investors holding smaller stakes. In 2013, FMO reported total assets of EUR 6.2 billion (USD 8 billion) and new investments valued at EUR 1.5 billion (USD 2 billion).

By Alíz Crowley, Research Associate

About Ameriabank Closed Joint Stock Company (CJSC)

Ameriabank Closed Joint Stock Company (CJSC) is an Armenian commercial bank that is headquartered in Yerevan. The bank offers commercial, investment and retail banking services focusing on the funding of corporates and small- and medium-sized enterprises (SMEs), including to support their renewable energy projects. The organization’s predecessor was established in 1910 as a branch of the Caucasian Trade Bank, which was later transformed into the Armenian arm of the USSR Vneshtorgbank. After the disintegration of the Soviet Union, in 1992, the Armenian Import-Export Bank CJSC was founded to assume the local assets of that institution. In 1995, Computeron Industrials Establishments purchased a majority stake in the bank. In 2008, the bank was renamed Ameriabank CJSC. As of 2014, the bank is controlled by Mr Ruben Vardanyan and other individuals. As of December 31, 2013, Ameriabank reported total assets of USD 777 million, return of average assets (ROAA) of 2 percent and return of average equity (ROAE) of 16.1 percent.

About Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO)

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) is a Dutch development bank that was founded in 1970. It supports financial institutions and governments through loans, guarantees and other investment promotion activities including local-currency investments. FMO is owned by the Dutch government, which holds a 51-percent stake, alongside commercial banks, trade unions, employers’ associations and individual investors. In 2013, FMO reported total assets of EUR 6.2 billion (USD 8 billion) and new investments valued at EUR 1.5 billion (USD 2 billion).

Sources and Additional Resources

[1] Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Ameria Bank CJSC

[2] Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Ameriabank CJSC Sets Example with Implementation of Environmental and Social Management System (ESMS)

[3] Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Key Figures

[4] Ameriabank, Investors Presentations, 2013 Annual Investors Presentation

MicroCapital, April 4, 2014, Dutch Development Bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO) Loans $10m to Kyrgyz Investment and Credit Bank (KICB)

MicroCapital, January 29, 2014, Kompanion Financial Group of Kyrgyzstan Receives Syndicated Loan of $12m from European Bank for Reconstruction and Development (EBRD), Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO)

MicroCapital, January 18, 2014, Zwitserleven, Spoorweg Pensioenfonds, Pensioenfonds Openbaar Vervoer Invest in $135m SME Finance Fund of Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO), Samenwerkende Nederlandse Spaarbanken (SNS) Impact Investing

MicroCapital Universe Profile: Ameriabank Closed Joint Stock Company (CJSC)

MicroCapital Universe Profile: Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO)

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