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Unibank Armenia - SME Financing.

Armenia | Financial Institutions

Identification Code:: OP/12/0074
Total Operation Cost:: 10.000.000 USD
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

5.000.000 USD – 30 Nov 2013
: BSTDB Signed Amount – Signed Date

5.000.000 USD – 19 Dec 2013
: Status:
Completed
Description and Purpose of the Operation:: The USD 5 million medium-term Loan to Unibank CJSC, Armenia is provided for Micro and SME financing purposes. Being a co-financing operation with IFC, the facility is structured according to the terms of the Master Cooperation Agreement (MCA) between IFC and BSTDB as indicated below; IFC A Loan - USD 5 million from IFC IFC B Loan/Parallel loan - USD 5 million from BSTDB Additional to the above arrangement, IFC will provide to Unibank a USD 5 million for Trade Liquidity facility which however does not constitute parallel loan under MCA.
Countries of Operation:: Armenia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Unibank CJSC, Armenia
Co-Financers/Participants:: International Financial Corporation (IFC)
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The proceeds of the Loan shall be used by the Borrower exclusively for the purpose of providing loans to eligible MSMEs. The Loan will facilitate: 1) Institutional development of Unibank, resulting in further business growth, stronger Balance sheet, improved liquidity and profitability; 2) Access of SMEs to Medium-term funding of capital expenditures and working capital; 3) Development of the country economy through job creation, income generation, improved company infrastructure. It will also increase trade turnover among BSEC countries. The facility will have a modest but positive impact upon regional cooperation, as certain other BSEC countries such as Georgia, Russia and Ukraine are important export destinations for Armenia, It is a fair guess that at least some of the proceeds of the loan will contribute to greater intra-regional trade.
Environmental Classification and Impact:: IFC's environmental and social assessment of the Borrower concluded that the associated environmental and social risks are limited, site- specific, largely reversible and can be readily addressed through mitigation measures such as, assigning the function of environmental and social assessment to an officer, develope guidelines for implementation, upgrade its human resources policies and prepare a staff training plan. BSTDB adheres to IFC’s environmental and social requirements and accepts the IFC Exclusion List - compatible with the BSTDB Environmental and Social Exclusion List, as well as the annual environmental and social performance reporting requirements.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org