ArmInfo. Converse Bank's statutory capital has been replenished by AMD 2,429,400,000. Currently, the total regulatory capital of the Bank amounts to AMD 31.9 billion, exceeding the minimum regulatory threshold, the press office of the Bank has told ArmInfo.
As a result of closed placement of the additionally issued shares, HayPost Trust Management B. V. Company purchased 7,693 common shares and became participant in the Bank's statutory capital with 14.06%. HayPost Trust Management B. V. Company is a company of the group managed by Eduardo Eurnekian. To maintain 5% proportion of participation by Mother See of Holy Etchmiadzin in the Bank's statutory capital, the Church purchased 405 additionally issued shares.
It should be mentioned that this is the second stage of replenishment of the Bank's total regulatory capital. In September, the Bank's principal majority shareholder - "Advanced Global Investments", increased the Bank's statutory capital by AMD 6.6 billion, and the Armenian Apostolic Holy Church - by AMD 0.4 billion.
Along with gradual replenishment and strengthening of capital, the Bank revises the corporate management system in line with international standards. New approaches within the long-term development strategy have been developed, according to which an Investment Programs Commission has been established at the initiative of well-known Argentinean businessman of Armenian descent Eduardo Eurnekian (head of Advanced Global Investments LLC). The Commission is authorized to study investment opportunities in various sectors of Armenia's economy to assess the investment attractiveness and feasibility of projects. High-qualified specialists are involved in the Commission's work. The Commission's activities will help activate assistance to such sectors as agriculture, mining industry, high technologies, and renewable energy, and will strengthen financial support to local exporters and implement efficient programs ensuring environmental safety. These programs are subject to further long-term financing by the Bank and are aimed at attracting investments from Diaspora.
To note, CJSC Converse Bank was founded in 1993. Following the repeated replenishment in December, the shareholders are Advanced Global Investments LLC (Eduardo Eurnekian) - 80.94%, Mother See of Holy Etchmiadzin - 5%, and HayPost Trust Management B.V. - 14.06%. The Bank has 34 branches, including 13 in Yerevan, 20 in the provinces and 1 in the NKR. As of 1 October 2016, the total capital of Converse Bank was 30.2 bln AMD ($63.7 mln), total regulatory capital - 28.2 bln AMD, statutory capital - 14.1 bln AMD ($29.6 mln), assets - 173.7 bln AMD ($366.1 mln), lending - 107.8 bln AMD ($227.2 mln, 54% of which was lending to economy sectors), liabilities - 143.5 bln AMD ($302.4 mln). In Jan-Sept 2016, the Bank's net profit amounted to 1.8 bln AMD or $3.7 mln (almost 3-fold growth versus Jan-Sept 2015).
To recall, Eduardo Eurnekian established Eurnekian Group, which includes all the information centers owned by Eurnekian as well as textile production located in four regions of Argentina and supplied to the USA, Europe, and Asia. Besides, he owns "America TV", 4 radio stations and "El Cronista", an Argentinean financial newspaper. In energy sector Eurnekian Group has built 2 modern plants of biodiesel fuel in Argentina. The Group was given permission to explore and develop petroleum and gas fields in the south of Argentina. Eurnekian also owns "Aeropuertos Argentina", operator of 32 Argentinean airports and airports in Uruguay, Ecuador and other countries of South America. The businessman is also a shareholder of a number of large Argentinean companies. Eurnekian is the owner of American International Airports, the concessionary operator of Zvartnots Yerevan Airport.