AMERIABANK CJSC
Status: Completed investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Ameriabank is a privately-owned bank in Armenia offering a range of financial and advisory services with a focus on the corporate and Small and Medium-sized Enterprises (SME) segments and a leading position in renewable energy. Ameria Group has more than 600 employees, around USD 1.3bn in assets and branches across the country . Ameriabank is an existing FMO client since 2009, and in 2010 was the recipient of FMOs first margin reduction for the successful implementation of its environmental and social management system.
What is our funding objective?
The US$ 30 mln facility will finance Ameriabank's customers eligible under FMO's youth loan. FMO-A will finance this loan and on best effort basis will sell up to USD 15m to eligible funds managed by FIM.
Why do we fund this investment?
As this is the first FMO youth facility it is viewed as innovative. It supports young entrepreneurs and individuals to get access to finance. In turn, this supports job creation and maintenance in a LMIC where 30% of the population live below the poverty line (2014, Worldbank). Youth unemployment in Armenia is highest in the former Soviet Union (~37% under age of 25 versus ~18% in total). Moreover, the transaction supports FMO’s strategy of catalysing funds by means of selling part of FMO’s take to FIM managed funds.
What is the Environmental and Social categorization rationale?
In relation to E&S risk we note that AB has a sizeable portfolio of relatively large exposures in higher E&S risk industries. However, we note that no unmitigated concerns have been identified. AB is E&S committed, which is also fostered by shareholder EBRD. Assessment, monitoring and mitigation process is robust before approvals granted. ESMS and risk management considered of high quality. Overall outcome for Ameriabank: E&S category B risk.
More investments
- Website customer/investment
- http://www.ameriabank.am
- Region
- Europe & Central Asia
- Country
- Armenia
- Sector
- Financial Institutions
- Effective date
- 11/30/2017
- End date
- 11/21/2022
- Total FMO financing
- USD 30.00 MLN
- Funding
- FMO NV
-
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) - B