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EBRD syndicates first loan in Armenia
Local enterprises to benefit from €12 million credit to ACBA Credit Agricole Bank
The EBRD is making its first syndicated loan in Armenia with a €12 million
credit to ACBA Credit Agricole Bank CJSC targeting the growing financial
requirements of local entrepreneurs, especially in rural and remote areas,
thanks to a rapidly growing economy.
The EBRD is providing half of the total loan amount, with the remaining €6
million to be syndicated to Citi under the EBRD’s A/B loan structure.
This first syndicated loan to a financial institution in Armenia is expected
to demonstrate the advantages to the sector of gaining access to commercial
funds in this way and other similar projects may follow.
ACBA was established in 1996 and late last year Credit Agricole became a
shareholder. The bank has become a key player in the Armenian banking sector
and is the country’s leading bank in terms of capital and third largest
measured by total assets. With close to 70 percent market share in rural
lending, ACBA is the only commercial bank in Armenia that is largely focused
on providing financial services to micro, small and medium-sized enterprises.
Michael Weinstein, head of the EBRD’s Yerevan office, said micro and small
businesses are vital for economic development and play a crucial role in
promoting the country’s transition towards a market economy. “This transaction
will directly support this important sector by providing increased access to
financing and marks the opening of international capital markets for one of
the leading Armenian banks”, he added.
ACBA’s CEO Stepan Gishyan said “ACBA has always been a leader in introducing
financial products and I am pleased that once again ACBA Credit Agricole Bank
is the first bank in Armenia to receive a syndicated loan. As a universal
bank, Credit Agricole has always focused its attention on MSE lending both in
urban and rural areas and will continue this policy in the future. The first
syndicated loan in Armenia will support the realisation of our strategy in the
sector.”
Michael Jinn, Fixed Income Managing Director for Citi, said, “We are pleased
to have participated in this transaction with EBRD and ACBA Credit Agricole.
This transaction demonstrates Citi's capability to provide access to finance
to microlending institutions and our worldwide commitment to support
microfinance initiatives.”
Through its micro and small enterprises programmes, the EBRD has supported
over one million small enterprises throughout eastern Europe, Russia, central
Asia and the Caucasus. Across its countries of operations, the EBRD has
committed over $1 billion to 105 financial institutions to facilitate $15
billion in loans to micro and small businesses in the region.. In Armenia the
EBRD has supported the establishment of a microfinance lending programme at
three leading commercial banks.
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