Ameriabank plans to enter IPO market, Board member says

YEREVAN, January 8. /ARKA/. Armenian Ameriabank plans to enter the IPO market, Richard Ogdon, an independent member of Ameriabank Board of Directors since July 2020, said in an interview that was provided to ARKA news agency by the bank's press service.

In Mr. Ogdon's words, Armenia has very attractive prospects - trade, rich history, culture, diverse agriculture, developing education, tourism and investments in infrastructure and a large Diaspora.

He said that over the past 10 years, economic growth in Armenia has been exceptional - 5-7% per year, and in this context Ameriabank is a window through which one can see the whole picture of the economy, because its clients include representatives of all sectors of the economy.

As Mr. Richard Ogdon noted, attraction of foreign investors is a constant process for any company, which includes different steps, projects, actions, and for Ameriabank, cooperation with international partners is not new.

Moreover, the bank has extensive experience in attracting investors to all elements of capital having among its shareholders the EBRD, ADB. The bank also attracted loans from the International Finance Corporation (IFC), the Symbiotic company, and recently issued so-called “green bonds” together with European Public Financial Institution and the funds raised will be used to implement various energy efficient projects.

“Raising capital envisages various stages, some of which Ameriabank has already passed, some are still ahead. One of the bank's tasks is to conduct an initial public offering (IPO) on the international market,” said Mr. Ogdon.

According to him, Ameriabank can serve as an example for others, since the bank's management is at a very high level; there is a strong management team, and the changes in the Board of Directors will further improve the governance structure and pave the way for the next steps in capital markets strategy.

Mr. Ogdon said also that in the course of any public offering investors are most interested in quality, growth prospects and novelties - whether you can offer something that is not available in other markets.

“I think that Armenia meets these criteria, many have heard about Armenia, but few are familiar with its investment opportunities and potential. It had growth potential, since until 2020, which was difficult for everyone, the country's economy grew at 5-7% per year, which is a good indicator. Investors need quality, and here Ameriabank is well represented, it is a quality bank with a strong management and supervision system, and expansion opportunities. The fact that it is located in Armenia creates additional value that may interest investors,” he said.

As for the investment value of Ameriabank, he said that it is a systemic bank playing a leading role in the system in terms of assets and book value, therefore, investments in Ameriabank are investments in Armenia, since it is represented in all sectors of the economy.

“I can't imagine a better opportunity to enter the Armenian market. Moreover, the bank also reflects opportunities for further growth, since 2020 was a difficult year for everyone, including banks and companies, and Armenia is no exception, but I think that this is temporary and there are many opportunities, including due to the bank's diverse client base. Investors demand high quality, regardless of where they are investing and will not go for discounts and benefits for newbies. The criteria are the same for everyone and the bank's international financial transactions are an indicator of how the highest criteria can be met. Investors see the result of its investment activities - credit transactions, bonds, private investment, mutual borrowing, local investment. All transactions are successful and this inspires confidence, if capital has been successfully raised earlier, then it will continue to be successful,” Mr. Ogdon said.

He stressed that a successful public offering takes some time, it is a complex and lengthy process - Ameriabank started working in this direction since 2014.

According to him, this is the right decision, since it is necessary to have a high rating and maintain relationships with investors, present its activities and achievements so that investors are familiar with them, so that when a transaction is concluded, the bank is well recognizable.

Ameriabank is a dynamically developing and one of the most stable and largest financial institutions in Armenia. As a universal bank, it provides a wide range of innovative corporate, investment and retail banking services in a comprehensive package. --0--