Tuesday, October 11 2016 21:50

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.