Home | Projects |

Ardshininvestbank 2 - SME Financing

Armenia | Financial Institutions

Identification Code:: OP/14/0030
Total Operation Cost:: 10.000.000 USD
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

10.000.000 USD – 20 Sep 2014
: BSTDB Signed Amount – Signed Date

10.000.000 USD – 04 Nov 2014
: Status:
Completed
Description and Purpose of the Operation:: The second Loan of USD 10 million to Ardshininvestbank Armenia will be used by the Borrower exclusively for the purpose of financing SME loans eligible in accordance with the eligibility criteria agreed with BSTDB. The Loan aims to contribute towards expanding the SME lending program of one of the leading Armenian banks and to better serve the rapidly growing SME financing needs of Armenian entrepreneurs.
Countries of Operation:: Armenia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Ardshininvestbank CJSC.
Co-Financers/Participants:: n/a
Guarantors/Sponsors:: n/a
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 SMEs. The Loan will facilitate: 1) Access of SMEs to Medium-term funding for their capital expenditures and working capital needs; 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 ASHIB, resulting in further business growth, stronger balance sheet, improved liquidity and profitability; 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:: The Borrower is an existing Client of the Bank and the gained experience in terms of its environmental and social performance has been positive. The Borrower has developed and implemented an appropriate environmental and social risk management system which is well functioning and it is integrated in its overall risk management system. The Loan Agreement will include environmental and social terms and conditions requiring the Borrower will remain compliant at all times with environmental, labor, and health and safety legal requirements in effect in the Republic of Armenia; continue to carry out environmental and social assessment of sub-loan of high risks and impacts; observe the BSTDB Environmental and Social Exclusion List; and submit to the Bank annual environmental and social performance reports.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org