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.
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.
|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
- Europe & Central Asia
- Financial Institutions
- Signing date
- Total FMO financing
- USD 20.00 MLN
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)