Senior unsecured loan to ACBA bank of up to USD 7 million for SME financing under the SME Competitiveness Programme in EAP ("SME Competitiveness Programme").
The project will enable ACBA 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 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. ACBA is the 4th largest bank by total assets with a dominant position in lending to agriculture and MSMEs in rural areas in particular.
ACBA's shareholders are:
- ACBA Federation CJSC, non-profit organization, which consolidates 10 Agri unions in Armenia- 83.80%;
- Credit Agricole S.A. through its subsidiary Sacam International SJSC - 4.55%;
- more than 5,000 shareholders, including legal entities and individuals - 11.65% (shares are listed on Armenia Securities Exchange).
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 (2019 ESP). ACBA is a long-standing client of the EBRD an ACBA's past performance and annual environmental and social (E&S) reporting to date for the existing exposures has been satisfactory. ACBA will need to continue to comply with PRs 2, 4 & 9 and further comply with the EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans, and TFP Environmental and Social Procedures; adhere to the updated EBRD's Environmental and Social Exclusion List as well as Referral List introduced with ESP 2019 and submit Annual E&S Reports to the Bank. ACBA's borrowers will be required to comply with applicable national environmental, health and safety and labour requirements. If any EBRD funds will be utilised to fund solar sub projects, such sub-projects should be managed in line with 'The Proposed Management Approach for Solar Supply Chain Risk Management' (CS/FO/21-35), (CS/FO/21-35 (Add 2)) and any subsequent guidance developed under that approach. The SMEC loan is consistent with the GET approach and the GET share is 70%.
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
31 Aug 2022
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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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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.