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

- USD 5 million will be used to finance "green" projects of the bank which are in compliance with FMO's Green Master List. - USD 5 million will be used to finance eligible Micro, Youth, Women and Agri customers of the bank in line with FMO's eligibility criteria, supporting our impact goal of reducing inequalities. - The loan facility can be used in local currency AMD and USD.

Why we fund this project

The transaction meets FMO's impact goals through on-lending criteria that comply with FMO's green and reducing inequalities eligibility criteria. The long term local currency option provides an important ALM instrument for ARARATBANK.

Environmental and social rationale

The project has been categorized as Category C in accordance with FMO’s Sustainability Policy. The Project’s activities are deemed to have minimal or no adverse environmental and social risks and/or impacts. As part of the Project, the Bank will be required to apply the EDFI Exclusion List and (Country) E&S laws and regulations.

More investments

Date Total FMO financing
5/17/2021 USD 25.00 MLN
4/12/2018 USD 20.00 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
10/22/2019
Total FMO financing
USD 10.00 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