InecoBank Equity Investment



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

22 Jul 2015



PSD disclosed:

14 Dec 2015

Translated version of this PSD: Armenian

Project Description

The project is for an equity investment of AMD 9.8 billion (EUR 18.4 million equivalent as of 11 Dec 2015) for the subscription to the newly issued shares of InecoBank CJSC, a leading MSME and retail bank in Armenia. As a result of the investment, EBRD will acquire a 22.7% stake of the bank's capital and voting rights. The Project will support the bank in financing the acquisition of ProCredit Bank Armenia and strengthening capitalisation of the combined bank for its planned medium-term growth.

Project Objectives

The project will facilitate the creation of a leading MSME lender in Armenia, whilst providing a platform for further consolidation in the fragmented Armenian banking sector.

Transition Impact

The expected transition impact of the project will derive from market expansion of MSME lending in Armenia by efficiently increasing access to finance to MSMEs, demonstration of successful consolidation in the banking sector and further improving standards for corporate governance and business conduct.

Client Information


InecoBank is the 7th largest bank by assets in Armenia. Founded in 1996, InecoBank has become the leading MSME and retail bank, serving over 200,000 clients. InecoBank has been long-standing EBRD client since 2005 and received EBRD funding through Trade Facilitation Facility (TFP), MSME and energy efficiency credit lines.

EBRD Finance Summary

EUR 18,372,418.00

Equity investment of AMD 9.8 billion.

Total Project Cost

EUR 19,272,418.00

Equity investment of AMD 9.8 billion by EBRD and AMD 478 million by two local founding


Environmental and Social Summary

Categorised FI (ESP 2014). InecoBank is an existing EBRD client and has environmental and social procedures in place that are compliant with EBRD's Performance Requirements. The bank submits satisfactory annual environmental and social reporting. Ineco bank will need to ensure that any reorganisation of the bank and optimisation of staff is complaint with the Performance Requirement 2 on Labour Conditions.

Technical Cooperation

Between 2006 and 2012 Inecobank benefited from technical co-operation in support of the development of its MSME lending capabilities. The bank participated in the Armenia Microlending Programme and the Armenia Multi Bank Finance Framework which included TC programmes designed to help partner banks develop MSME loan products, train specialized lending personnel, and internalise efficient MSME lending procedures and sound credit decision-making mechanisms.

Donor funding was provided through the Early Transitions Countries Fund and the US/EBRD SME Financing Facility. The bank has also benefitted from technical co-operation in support of the Bank's Trade Finance Programme and Energy Efficiency Framework.

Company Contact Information

Taron Ganjalyan, CEO

+37410 510 569
+37410 510 573

17 Toumanian street, Yerevan, Armenia

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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Text of the PIP

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