Armenian lender Inecobank has purchased 100% of shares of ProCredit Bank Armenia, a lender focused on micro, small and medium-sized enterprises.
The deal has been funded by equity investment of AMD9.8bn ($20.3m) from the European Bank for Reconstruction and Development (EBRD), who will own a 22.7% stake in the merged entity.
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The transaction also received funding from two of Inecobank’s major local shareholders, as well as a $20m loan from the International Finance Corporation.
InecoBank CEO Taron Ganjalyan said: "We are excited to welcome our long-term and trusted partner EBRD as Inecobank’s shareholder. The acquisition of ProCredit Bank and the capital increase will enable us to significantly enhance our services to MSMEs based on the tradition of excellent customer service that we share with ProCredit Bank.
"Support from EBRD and our existing shareholder – IFC in the form of a senior loan, is an evidence of their confidence in Inecobank’s business model and the Armenian banking system."
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