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Ameriabank 3 SME Financing

Armenia | Financial Institutions

Identification Code:: OP/20/0043
Total Operation Cost:: 22.950.000 EUR
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

30.000.000 EUR – 22 Apr 2021
: BSTDB Signed Amount – Signed Date

22.950.000 EUR – 18 May 2021
: Status:
Active
Description and Purpose of the Operation:: BBy providing a new loan to Ameriabank, BSTDB will be able to access a large number of local SMEs, which will contribute to the development of Armenian economy. This will promote job creation, income generation (additional taxes), improve companies’ infrastructure, and potentially increase trade turnover between BSEC countries since some of SMEs are involved in foreign trade. This Loan will also contribute to post-pandemic SME sector recovery.
Countries of Operation:: Armenia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Ameriabank, established in 1992, is currently the largest universal bank in Armenia with 20 branches and a market leader with an estimated market share of 15.2% in terms of total assets, offering a full range of corporate, investment and retail banking services. The bank is quite advanced technologically and exhibits adherence to strong corporate governance standards.
Co-Financers/Participants:: n/a
Guarantors/Sponsors:: n/a
Developmental and Regional Cooperation Impact:: The operation involves a new loan in an amount bringing BSTDB aggregate exposure to EUR 30 million 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. Also, the additional amount provided will 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 and only to the extent SMEs benefiting from financing are involved in trade activities with other BSEC countries.
Environmental Classification and Impact:: Ameriabank is an existing Borrower of BSTDB and the E&S due diligence has been carried out under the previous operations and its current performance is monitored annually by the Bank. The due diligence and annual monitoring conclude that Ameriabank has a functioning E&S management system consisting of E&S Policy, procedures and guidelines, which are compliant with international best practices for FIs. Overall the E&S performance of the Borrower and the Bank’s experience gained over the years in relation to Ameriabank has been positive.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org