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Ardshininvestbank - Mortgage Financing.

Armenia | Financial Institutions

Identification Code:: OP/12/0031
Total Operation Cost:: 8.000.000 USD
Maturity:: 84 months
Operation Status:: BSTDB Approved Amount – Approval Date

8.000.000 USD – 23 Jun 2012
: BSTDB Signed Amount – Signed Date

8.000.000 USD – 24 Jun 2012
: Status:
Completed
Description and Purpose of the Operation:: The USD 8 million Loan will be used by the Borrower exclusively for the purpose of financing/refinancing residential mortgage loans eligible in accordance with the eligibility criteria agreed with the Bank. The Loan aims to contribute towards expanding of the mortgage lending program of one of the leading Armenian banks and to better serve the rapidly growing mortgage financing needs of its clients.
Countries of Operation:: Armenia (100,00%)
Financial Product:: Loans
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Ardshininvestbank CJS
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The Loan is expected to increase the accessibility of the population to affordable long-term mortgage loans, as well as contribute to the improvement of the living conditions of the population. Though limited, mortgage loans for renovation/repair will have positive impact on the economic activity and also support the government’s initiatives to develop housing and mortgage market in Armenia. To the extent that the mortgage financing supports new home construction, it contributes to increased economic activity and thus to the generation of wealth and additional tax revenue gains from the incremental activity.
Environmental Classification and Impact:: The Borrower will remain compliant at all times with environmental, health and safety legal requirements in effect in the Republic of Armenia; carry out on a case by case basis environmental assessment of the residential properties financed that have the potential to pose risks to human health and safety; observe the BSTDB Negative List of Products; and submit to the Bank annual environmental, health and safety performance reports. The Borrower will take into consideration specific environmental risks related to safety of property to be financed when financing residential property and integrate these requirements in the standard mortgage loan assessment procedure.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org