A senior unsecured loan to ASHB of up to USD 10m under the Financial Intermediaries Framework ("FIF") for on-lending to private micro, small and medium enterprises ("MSMEs") in Armenia.
The project will improve access to finance for MSMEs, which are the main source of employment in the private sector and a major contributor to the economy in Armenia. The loan will enable ASHB to increase outreach and meet unsatisfied demand for longer term funding from MSMEs. The focus will also be on lending in the regions outside the capital and attracting new MSME clients.
ETI score: 60
Competitive: ASHB will expand its MSME portfolio, with a focus on reaching regional clients and attracting new clients.
Resilient: ASHB is expected to maintain strong loan portfolio quality.
Ardshinbank CJSC (ASHB) is a long-standing partner bank of EBRD. It is the largest bank in Armenia by total assets and the second largest by gross loan portfolio with 17.7% and 12.3% respective shares in the system as of end Q2 2023.
ASHB is rated BB- stable by Fitch (Aug 2023), Ba3 stable by Moody's (Jun 2023) and B+ positive by S&P (Oct 2022).
EBRD Finance Summary
Total Project Cost
Financing structure: EBRD offers a tenor, which is above the market average and is necessary to structure the project.
Environmental and Social Summary
Categorised Financial Institution ("FI") (Environmental and Social Policy 2019): ASHB will be required to implement and comply with the relevant EBRD's Environmental & Social Procedures. ASHB will need to ensure ongoing compliance with Performance Requirements 2, 4 and 9 and submit annual environmental and social reports to the EBRD via FI Sustainability Index, including reporting on sub-projects and their climate change mitigation and climate change adaptation benefits. Beneficiaries financed through the EBRD loan will be required to comply with national requirements for environment, health and safety and labour standards and the environmental and social eligibility criteria for climate mitigation and climate change adaptation projects as per the Policy Statement.
Technical Cooperation and Grant Financing
Company Contact Information
13 Grigor Lusavorich, 0015 Yerevan, Republic of Armenia
PSD last updated
11 Sep 2023
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Independent Project Accountability Mechanism (IPAM)
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