OREANDA-NEWS. November 13, 2012. Armenian ARARATBANK OJSC and the Rural Impulse Fund II (RIF II) of Belgian Incofin Invetsment Management (Incofin IM) sign a shareholder agreement. RIF II will hold 10% of the Bank’s shares and will be represented in the Board of Directors, reported the press-centre of ARARATBANK.

Mr. Geert Peetermans, Chief Investment Officer, will sign the agreement on behalf of the Incofin Investment Management. Mr. Ashot Osipyan, Chairman of Executive Board and CEO of ARARATBANK OJSC, will sign the Agreement on behalf of the Executive Body. Barsegh Beglaryan, Chairman of FLASH LLC Board of Directors, will sign the Agreement as a major shareholder of ARARATBANK.

In the third quarter the Bank’s assets increased by 13% as compared to the beginning of the year, reaching AMD 98,9 billion. The disbursed loans increased by 10,3% and term deposits by 25,4%. During the reporting period the customer base of ARARATBANK increased by 13,5%.

Currently the bank serves 159 948 customers.

Incofin IM (www.incofin.com) is a manager of impact investment funds that strive to achieve balanced social and financial returns. Rural Impulse Fund II, managed by Incofin IM, is a EUR 120 million fund that invests in microfinance institutions that not show growth potential and a healthy financial structure and attach great importance to social performance. The fund wants to reach out to people who live in more secluded rural areas and/or who are active in the agricultural sector. From its offices in Belgium, Colombia and India Incofin IM finances and supports organizations in over 40 countries.

Incofin IM and ARARATBANK started working together in 2011 when Incofin provided ARARATBANK a USD 3 million loan through the microfinance portfolio it manages for the Belgian VDK Spaarbank. The RIF II investment guidance of Incofin IM will enable ARARATBANK to strengthen its position on the Armenian financial market. ARARATBANK will work on developing new lending tools, offering additional banking services according to international banking practices, as well as setting up agricultural lending.

Experience of the new shareholder in the lending field will enable ARARATBANK to strengthen its positions on the Armenian financial market by suggesting new lending tools, new banking services based on the up-to-date criteria of the international banking practice, as well as will enable to be active in the agricultural lending.

B. Beglaryan believes that this cooperation will contribute to the development of ARARATBANK and will be long-term.

According to A. Osipyan the new transaction arises from the strategy adopted by the Bank, that is, to have an institutional shareholder. The entry of the new shareholder will enable to increase the lending tool kit, as well as to provide services in compliance with the international standards.
As of 30 September, 2012 the total capital of ARARATBANK stood at AMD 14,9 thousand and liabilities – AMD 84,1 thousand. According to the indicators of the reporting period net profit of the Bank stood at AMD 2, 9 billion, ROE – 28% and ROA - 3,6%.