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Ameriabank - SME Financing

Armenia | Financial Institutions

Identification Code:: OP/13/0048
Total Operation Cost:: 10.000.000 USD
Maturity:: 84 months
Operation Status:: BSTDB Approved Amount – Approval Date

10.000.000 USD – 14 Feb 2014
: BSTDB Signed Amount – Signed Date

10.000.000 USD – 08 Jul 2014
: Status:
Completed
Description and Purpose of the Operation:: The USD 10 million medium-term Loan to Ameriabank CJSC Armenia aims to contribute towards expanding of the SME lending program of Ameriabank and facilitate access to medium term finance for small and medium sized private businesses and entrepreneurs. The proceeds of the Loan shall be used by the Borrower exclusively for the purpose of providing loans to eligible SMEs.
Countries of Operation:: Armenia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Ameriabank CJSC
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The Loan will facilitate: 1) Access of SMEs to Medium-term funding of capital expenditures and working capital; 2) Development of the country economy through job creation, income generation, improved company infrastructure. It will also increase trade turnover among BSEC countries; 3) Institutional development of Ameriabank, resulting in further business growth, stronger balance sheet, improved liquidity and profitability. The facility will have a modest but positive impact on regional cooperation, as certain BSEC countries like Georgia, Russia and Ukraine are important export destinations for Armenia. It is fairly presumed that at least some of the proceeds of the loan will contribute to greater intra-regional trade.
Environmental Classification and Impact:: Ameriabank developed an environmental and social risk management system which was systematically applied to all the commercial loans as part of the overall risk analysis practice, reportedly. Dedicated staff is employed for environmental and social risks management. The appropriate qualification of the involved staff is regularly maintained by participating at the specialized trainings on environmental and social management systems for private sector FIs. For the purpose of this operation Ameriabank will be required not to engage in financing any activities and products contained in the BSTDB's Environmental and Social Exclusion List and to regularly submit information regarding its environmental and social management system, as well as to comply and to require its sub-Borrowers to comply with environmental, health, safety and labor norms.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org