Senior unsecured loan in the amount of up to USD 4 million to ACBA Bank for on-lending to women-led MSMEs under the Women in Business (WiB) Programme in the Eastern Partnership countries.
The proposed loan will promote further women's entrepreneurship and women's participation in business facilitating access to finance, know-how and advice. It will further strengthen ACBA`s customer base and further support and encourage developing new products in the local banking sector with specific focus on women-led SMEs and growth of medium and long-term financing.
ETI score: 80
Inclusive: The Project will address the "medium" gender related inclusion gap for access to finance in Armenia. In conjunction with TC and FLRC, the WiB loan will encourage ACBA to continue undertaking changes in their business model and delivery mechanisms and to develop, test and roll out new financial and non financial products tailored for the women-led MSMEs, with a specific focus on micro enterprises, start-ups and outreach to new customers.
Competitive: In line with FIF market expansion objectives, the project will support ACBA's lending to women-led MSMEs in Armenia by 1.4x of EBRD's funding. This transaction is expected to encourage ACBA to further expand its lending to women-led MSMEs over and above the EBRD investment, with a focus on regional outreach and new clients.
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
Financing Structure: EBRD will provide long-term financing to ACBA bank available in USD or LCY in a market where short-term assets and liabilities prevail.
Standard-setting: helping projects and clients achieve higher standards: WiB Loan will address the gaps in available financing for Women SMEs and the lack of an integrated response to such gap, either from private sector institutions or other IFIs. Additionality is evidenced by the presence of TC support and a risk cover aimed to support ACBA to increase lending to the underdeveloped WiB segment. ACBA will also benefit from EBRD's experience in previous ASB activities and stand-alone WiB operations in the EaP countries, as well as relevant activities in other countries of operation.
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.
Technical Cooperation and Grant Financing
TC: The EaP WiB TC Programme includes two linked components: (i) Capacity Building to PFIs to implement the Programme and a range of cross-cutting activities in support of Programme promotion and management; and (ii) Women-led SMEs access to now-how (Advice for Small Businesses). The source of donor funding is Sweden.
Non-TC: The project is supported by First Loss Risk Cover of up to 10% of the loan portfolio with a cap of 70% for any single sub-loan funded by the EBRD Small Business Impact Fund. The AMD portion of the loan will also benefit from FLRC of 12.5% under the SME LCY Programme.
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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