Provision of a senior unsecured loan in the amount of up to USD 6 million equivalent in local currency to Converse Bank, a joint-stock company incorporated in Armenia, for on-lending to local private micro, small and medium enterprises ("MSMEs").
The Project will assist Converse Bank in mobilising external funds in local currency which will help to diversify the bank's funding base and expand local currency lending to private MSMEs in Armenia.
The Project will promote local currency lending in Armenia thus supporting the development of the domestic capital market in the country and de-dollarization of the economy as well as fostering a more stable financial environment.
ETI score: 60
Competitive: The Project will support competitiveness of MSMEs in Armenia by increasing the availability of financing in local currency and contribute to the competitiveness of Converse Bank by facilitating the expansion of its MSME portfolio with a focus on new and regional clients.
Resilient: Requirements to comply with financial covenants and portfolio quality ratios will also contribute to the resilience of the institution.
CONVERSE BANK CJSC
Converse Bank CJSC is an established dynamically growing bank, which offers various services to individuals and legal entities. Among 17 banks in Armenia CB ranks the 6th by three indicators: total assets (5.6% market share), loan portfolio (6.2% market share) and customer deposits (6.5% market share) as of 3Q 2019.
Converse Bank CJSC is ultimately owned by Mr. Eduardo Eurnekian, an Argentine businessman with Armenian roots.
EBRD Finance Summary
Total Project Cost
Financing Structure: EBRD offers local currency financing on terms not readily available in the market but necessary for achievement of the project objectives.
Standard-setting: The project will benefit from EBRD expertise on higher financial standards, including through financial covenants.
Environmental and Social Summary
Categorised FI (2014 ESP). Converse Bank is an existing client under the Trade Facilitation Programme (TFP) and has provided an updated ESDD questionnaire to confirm its adherence to EBRD's requirements for FIs. The bank will be required to comply with EBRD's Performance Requirements 2, 4 and 9, implement the EBRD's Environmental&Social Risk Management Procedures for Micro, SME and Corporate lending which includes adherence to the EBRD's Environmental and Social Exclusion List and submission of annual E&S reports via the Sustainability Index to the Bank. Sub-borrowers financed through Converse Bank's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.
Technical Cooperation and Grant Financing
Company Contact Information
+374 10511211 ext 1373
+374 10 511212
Head office 0010, Yerevan, 26/1, Vazgen Sargsyan Phone: +374 10 511211 Fax: +374 10 511212
PSD last updated
20 Jan 2020
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