ArmInfo. Ameriabank held a seminar "International Capital as a Driver of Business Growth" Tuesday inviting its customers and partners. The goal of the event was to inform business entities of the opportunities to enter the international capital markets, raise foreign funds through placing borrowed bonds and shares on the London Stock-Exchange.
Talking to journalists, Ameriabank Director for Investment Banking Arno Mosikyan, said it is high time to tell the Bank's partners about the wide opportunities of growth the international capital market can give to them. He said the seminar looks to tell the local companies how they can enter LSE and attract investors ready to work with the securities of Armenian emitters in various sectors of economy, including industry and information technologies. He said the entry to the capital market requires certain preparations, knowledge and skills and Ameriabank's seminar covers all these issues. Mosikyan said that AMERIA Group entered the market two decades ago and it is providing advisory services and can help the local emitters of securities enter international stock exchanges.
Olga Plevako, KPMG Associate Director, Transaction Services, Moscow CIS Metals and Mining Sector Executive, in turn, said the Armenian business has more capacity to enter international markets of capital comparing to the other CIS countries. There are many investor who can and want to deal with such markets as Armenia, they can make investments and have learned how to use all the pros and cons of local companies. Plevako believes that it is better to start with issue of debt securities not shares while preparing to enter international markets. Corporate debt securities issued for the international loan market (eurobonds) will help companies tap into experience of investors, hold all the necessary procedures to introduce corporate management principles, create institution of independent directors, transparency, financial reporting based on international standards, improve the internal audit, learn investor relations and start their own equity story that is necessary to launch IPO.
Olga Plevako thinks there is lack of interesting equity stories, while investors seek securities for interesting emitters. In response to ArmInfo's question as to whether it is desirable to test one's capacities at local markets or at least on the special stock exchanges in Poland or Canada for emerging markets before entering LSE, Olga Plevako said London Exchange Market has the best practice of work with new markets whose securities are listed in the special category "A" that requires special procedure of listing. LSE has an unprecedented history of cooperation with CIS countries. No other stock exchange in the world has so many emitters and ready solutions, she said.
Ayuna Nechayeva, head of Primary Markets of Russia, Mongolia amp; CIS at London Stock Exchange, said it is necessary to create an individual story of the future emitter. Nechayeva said she arrived in Armenia to share her knowledge and tell about the steps the local companies need to take to enter LSE. In Armenia there are sectors where companies are ready to launch this process, for instance, mining and financial companies. She said shares of 68 emitters from Russia, 14 from Kazakhstan and 3 from Georgia are currently listed on LSE. Another two companies with Georgian shares are due to enter the market and the Armenian companies are able to do it as well.
