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Ameriabank 2 - SME Financing

Armenia | Financial Institutions

Identification Code:: OP/17/0065
Total Operation Cost:: 15.000.000 USD
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

15.000.000 USD – 05 Apr 2018
: BSTDB Signed Amount – Signed Date

15.000.000 USD – 21 May 2018
: Status:
Completed
Description and Purpose of the Operation:: Provision of a second Loan of USD 15 million to Ameriabank, Armenia. The proceeds of the Loan shall be used by the Borrower exclusively for the purpose of providing loans to eligible SMEs, aiming 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:: Ameriabank is the largest universal bank and market leader in the country, offering corporate, investment and retail banking services. The principal activities are deposit taking and customer account maintenance, lending, issuing guarantees, cash and settlement operations and operations with securities and foreign exchange. The bank is technologically advanced and can provide high added value financial- banking solutions to its clientele.
Co-Financers/Participants:: n/a
Guarantors/Sponsors:: n/a
Developmental and Regional Cooperation Impact:: The operation involves a USD 15 million loan and is expected to have modest but favorable economic benefits for the Armenian economy, the most relevant being additional tax revenue gains from increased economic activity under the additional amount provided. It will also help further enhance benefits such as increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is similarly expected to be modest. Other BSTDB countries are important trade partners for Armenia so to the extent SMEs benefiting from financing from the operation engage in export activities, there will be regional cooperation benefits.
Environmental Classification and Impact:: The E&S due diligence of Ameriabank concludes that the Borrower has a functioning E&S management system consisting of E&S Policy, procedures and guidelines and is compliant with international best practices for FIs, as well as the relevant requirements of BSTDB. Environmental and Social Management System has been adopted in 2010, upgraded in 2016 according to the best international practice and requirements of partner IFIs with eleven E&SR minimization procedures (OHS, SEP, GRM, etc.) describing complex actions of risk management and an external expert engagement function was developed for high risk projects defined in procedures. Ameriabank has confirmed that it is not engaged in financing products and services stipulated in the BSTDB’s E&S Exclusion List. For the purpose of this operation the Borrower will be required to 1) remain compliant with national E&S requirements in effect in Armenia and its own E&S management system; 2) follow the BSTDB E&S Exclusion List; and 3) submit annual E&S performance reports.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org