Project detail - ARARATBANK OJSC

ARARATBANK OJSC

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Who is our client

ARARATBANK OJSC is a mid-sized universal bank in Armenia focusing on Micro, SME and Retail customers. The bank operates the 3rd largest branch network in the country and employs around 950 staff. ARARATBANK is an existing client of FMO since 2014 in the area of funding and technical assistance.

Funding objective

The intended 5 year loan will be used to finance a combination of eligible youth and women MSME customers of ARARATBANK.

Why we fund this project

Reducing inequalities is at the heart of FMO’s strategy. This new loan meets the United Nations Sustainable Development Goals supporting women and young MSME entrepreneurs with access to finance. Furthermore, this proposed loan provides ARARATBANK with stable long term funding, which indirectly contributes to economic development in Armenia.

Environmental and social rationale

Low risk, C-category. The bank has a well-functioning ESMS that covers the whole loan book. No exposure to IFC PS triggered transactions, no exclusion list exposure, limited high risk E&S exposure, no project finance and an overall low average loan size.

More investments

Date Total FMO financing
5/17/2021 USD 25.00 MLN
10/22/2019 USD 10.00 MLN
2/26/2016 USD 7.50 MLN
9/26/2014 USD 10.00 MLN
Website client
http://www.araratbank.am
Region
Europe & Central Asia
Country
Armenia
Sector
Financial Institutions
Signing date
4/12/2018
Total FMO financing
USD 20.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
C