ARARATBANK OJSC
Status: Approved investmentWhy disclosure?
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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
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.
What is our 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 do we fund this investment?
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.
What is the Environmental and Social categorization 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 |
| 4/24/2023 | USD 20.00 MLN |
| 8/29/2019 | USD 7.50 MLN |
| 8/29/2019 | USD 10.00 MLN |
- Website customer/investment
- http://www.araratbank.am
- Region
- Europe & Central Asia
- Country
- Armenia
- Sector
- Financial Institutions
- Publication date
- 9/10/2019
- Effective date
- 10/22/2019
- Total FMO financing
- USD 10.00 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) - C