Provision of a senior unsecured loan to ACBA bank of up to USD 5m for SME financing under the SME Competitiveness Programme in EAP ("SME Competitiveness Programme").
The proceeds of the Bank's investment will be on-lent by the bank and its leasing subsidiary in line with SME Competitiveness Programme' Policy Statement to private sector sub-borrowers in order to upgrade their technologies and equipment up to EU standards including for investments into sustainable investments in technologies and promoting the use of green technologies, thereby enhancing MSMEs' competitiveness.
ETI score: 75
The project is expected to address existing market barriers that SMEs face to undertake necessary investments (limited access to medium and long-term financing, lack of technical expertise for identification and design of related improvements). The project will also further strengthen capacity of ACBA in assessing and financing targeted investments.
ACBA BANK OJSC
ACBA bank is a long-standing partner bank of EBRD since the first engagement in 2003 and one of the leading banks in Armenia. It is the 4th largest bank in Armenia in terms of total assets with a dominant position in lending to agriculture and MSMEs in rural areas in particular. The bank belongs to the local shareholder ACBA Federation CJSC (non-profit organization, which consolidates 10 Agri unions in Armenia), which currently owns 95% of shares, while Sacam International SJSC owns the remaining 5%.
EBRD Finance Summary
Total Project Cost
The project will provide long-term financing to ACBA bank in a market where short-term assets and liabilities prevail. ACBA and its clients will benefit from the EaP SMEC capacity building programme supporting investment project preparation and implementation. The sub-borrowers will also receive financial incentives for successfully implemented sub-projects.
Environmental and Social Summary
Categorised FI (ESP 2019): ACBA bank will be required to continue to comply with PRs 2, 4 & 9, implement the applicable environmental and social procedures and submit annual ennvironmental and social reports to the Bank.
Technical Cooperation and Grant Financing
TC: the project will be supported by a comprehensive TC package funded by the European Union, with the objective to assist ACBA bank with capacity building, implementation and monitoring of the programme.
Non-TC: Sub-projects will be eligible for incentive grants (up to 15% of the lower of the investment cost or the respective disbursed sub-loan amount) funded by the European Union.
Company Contact Information
+ 374 10 31 8888
82-84 Aram str. / 0002 Yerevan / Republic of Armenia
PSD last updated
30 Apr 2021
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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