$10 million for financing private businesses in Armenia
The EBRD is supporting the development of the private sector in Armenia and increases further the availability of financing in the real economy sector with a $10 million loan to Ameriabank for on lending to local companies under its Medium Sized Co-financing Facility (MCFF).
Ameriabank is the sixth largest bank in Armenia by total assets and among the top three fastest growing banks in the country. It is owned by “TDA Holdings Limited”, an investment company affiliated with Troika Dialog, a leading Russian investment banking group.
Under the MCFF, the proceeds of the EBRD loan will be used to co-finance Ameriabank’s loans provided to medium-sized companies. Ameriabank is supporting the project with up to $10 million from its own resources. The transaction will support Ameriabank’s development strategy, enabling it to offer larger loans to Armenian businesses in the current challenging environment. Ameriabank will also take the lead in originating and monitoring the co-financed loans.
“Through this project the EBRD is reconfirming its commitment to support the growth of the private sector in Armenia by facilitating access of local enterprises to much-needed financing. We are pleased to extend our co-financing facility to Ameriabank, helping it to expand its loan portfolio”, said Mike Taylor, EBRD Director, Financial Institutions, Central Asia, Caucasus, and Mongolia.
“Ameriabank proudly joins the Medium Sized Co-financing Facility as this cooperation with EBRD opens new perspectives for Ameriabank’s loan profile diversification, as well as highly contributes to the development of the medium size business sector, as a cornerstone of the Armenian economy”, said the Chairman of the Management Board-General Director of Ameriabank, Artak Hanesyan.
The EBRD loan is part of the Bank’s Armenia Multi-Bank Framework Facility II, aimed at supporting the increase of financial intermediation in Armenia through medium-term credit lines to local commercial banks for on-lending to commercial customers. Since the facility was launched in 2006, over $118 million was disbursed to 12 banks operating in Armenia.
Overall, since the beginning of its operations in Armenia, the EBRD has committed over €335 million in approximately 70 projects in the financial, corporate, infrastructure and energy sectors.
Ameriabank CJSC is one of the most dynamic banks in Armenia and ranked among the country’s most stable financial institutions. It is one of the first investment banks in Armenia, and since 2007 has been providing an extensive list of innovative banking products and services specifically tailored to meet its customers’ needs. For more information, visit www.ameriabank.am.