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ACBA Bank SME I

Armenia | Financial Institutions

Identification Code:: OP/06/0612
Total Operation Cost:: — USD
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

10.000.000 USD – 27 Jul 2007
: BSTDB Signed Amount – Signed Date

10.000.000 USD – 31 Jan 2008
: Status:
Completed
Description and Purpose of the Operation:: BSTDB and ACBA - Credit Agricole Bank continue successful cooperation with an SME Loan Facility to support micro, small and medium sized companies in Armenia with the purpose to finance investment programmes for the creation, modernisation, expansion and diversification of industrial, production, agricultural or service-related facilities.
Countries of Operation:: Armenia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: ACBA, the only cooperative bank in the CIS countries, was founded in March 1996 to finance the development of the agricultural sector in Armenia. The establishment of the bank resulted from a joint initiative of the Government of Armenia and the European Union. At present, ACBA-Credit Agricole Bank is one of the leading banks in Armenia. The bank continues to specialize in lending to small and medium-sized enterprises. Entrance of Credit-Agricole Group as a strategic shareholder allowed the bank to strengthen its market share and improve its position as a key banking institution in the country. Thanks to its dynamism and solid customer base, ACBA-Credit Agricole Bank posted a significant increase in activity in last years.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: In cooperation with ACBA, BSTDB extends medium term funding to numerous small and medium-sized enterprises in Armenia, as well as demonstrates viability of providing longer term funding to Armenia's developing small and medium enterprise sector. In the interest of facilitating economic development in member countries, BSTDB wants to support local financial intermediaries and help this important sector of the economy grow.
Environmental Classification and Impact:: The Borrower has adopted and implemented the basic environmental procedures satisfactory to BSTDB and has integrated them as fully as possible into its credit/investment appraisal and monitoring process. The Borrower is required to undertake environmental assessment of the sub-loans with medium and high environmental risk, as well as ensure proper monitoring of these operations; ensure compliance of the sub- loans with applicable national EH&S requirements; continue to adhere to the Bank’s Environmental Exclusion List and Negative List of Goods; and submit annual EH&S performance reports.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org