Provision of a senior loan to Ameriabank of up to USD 5 million under the SME Competitiveness Programme in Eastern Partnership ('EaP SMEC'), established by the EBRD in cooperation with the EU to help finance investments in micro-, small and medium sized enterprises ('MSMEs') to support sustainable investments in technologies, meeting best standards in the field of product quality, occupational health and safety, environmental protection, and promoting the use of green technologies, thereby enhancing MSMEs' competitiveness locally and regionally.
The project will enable Ameriabank to finance long-term investments of Armenian MSMEs in upgrading their technology and equipment necessary to meet EU standards in terms of product quality, health and safety measures and environmental preservation. At least 70 per cent of all financed sub-loans are expected to be compliant with EBRD Green Economy Transition (GET) approach. In addition to long-term financing, eligible sub-borrowers will receive technical assistance and grant support in the form of investment incentives upon the completion of their investment projects.
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 the capacity of Ameriabank in assessing and financing targeted investments.
Ameriabank is the largest of the 17 banks in the Armenian banking sector by total assets (market share of 15.7% and a balance sheet of USD 2.2bln as of Q3 2021). AB is also the market leader by equity size, loan portfolio and net profit. It operates through 22 branches in major cities and most populated regions, employing staff of over 1100.
EBRD Finance Summary
Total Project Cost
Financing structure: EBRD offers financing that is not available in the market (e.g. a longer grace period and tenor than the market average) from commercial sources on reasonable terms and conditions, which are necessary to structure the project.
Innovative financing structures and/or instruments: EBRD offers an innovative green finance instrument that integrates aspects such as climate and environmental, social and governance (ESG) standards and/or climate and ESG risk considerations into the financing structure. For instance, adjusting loan pricing and/or level of concessionality to reflect level of climate risk and/or positive climate benefits, such as GHG reductions, climate resilience benefits.
Knowledge, innovation and capacity building: EBRD provides expertise, innovation, knowledge and/or capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of the client.
Environmental and Social Summary
Categorised FI (2019 ESP). Ameriabank's past performance and annual environmental and social (E&S) reporting to date for the existing exposures has been satisfactory. Ameriabank will be required to continue to comply with PRs 2, 4 & 9, implement the applicable environmental and social procedures and submit annual environmental and social reports to the Bank.
Technical Cooperation and Grant Financing
TC: Ameriabank will benefit from a TC programme funded by the EU for successful implementation of the facility and, additionally, a verification consultant will be engaged to verify the technical implementation of sub-projects before investment incentives are released to relevant MSMEs.
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
PSD last updated
14 Dec 2021
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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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Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.