ArmInfo. ARARATBANK has in advance met and even exceeded the minimum capital requirement to come into force since 2017. The press-service of the bank has told ArmInfo that as a result of additional issue of stocks amounted to 8.5 bln drams total capital has been increased by 38.6% in Q3 to 30.507 bln drams from 22.007 bln drams. To note, the Central Bank of Armenia has made a decision to increase minimum total capital requirement to 30 bln drams from January 1, 2017 versus current 5 bln drams.
The bank has told ArmInfo without mentioning concrete numbers and names that during the issue new individual minority shareholders have been attracted, however the main participation in the issue was ensured by former majority shareholders. To recall, as of 1 July 2016, the majority shareholders of the Bank were Flash oil trader (64.24%), EBRD (25%+1 share), and Rural Impulse Fund II (part of Incofin Investment Management - Incofin IM) with a 10% stake.
The bank has also informed that placement of the stocks within the given issue finished 4 days earlier from scheduled day-26 September. The decision to issue stocks was taken on June 17 on the general meeting of shareholders, particularly the start of placement was scheduled for July 20 and the process was to finish on September 30. The results of the placement will be approved at the shareholders' general meeting, after which the relevant changes will be included in the Bank's Charter and presented to the CBA for registration.
According to the Financial Rating of Armenian Banks prepared by ArmInfo News Agency as of July 1, 2016 ARARATBANK's total capital amounted to 22.007 bln AMD with 24% growth in three-year term (versus H1 2013). The Bank's authorized capital totaled 8.3 bln drams from 2013 to July 1, 2016. Not considering the abovementioned replenishment, last time the bank's authorized capital was increased in the end of 2012 via attracting new shareholder- Rural Impulse Fund II (part of Belgian Incofin Investment Management - Incofin IM). As of July 1 2016 the number of ARARATBANK's shareholders totaled 85, most of whom were physical entities. The share of residents in authorized fund totaled 65% as of July 1 2016, the remaining 35% non- residents; the share of legal entities and individuals' participation in the capital was 99.24% and 0.76% respectively.