Project detail - ARARATBANK - NASIRA PORTFOLIO

ARARATBANK - NASIRA PORTFOLIO

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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 5th largest branch network in the country and employs around 1025 staff. Araratbank is an existing client of FMO since 2014 in the area of funding and technical assistance.

Funding objective

We offer a risk sharing facility to Araratbank to support Covid-19 affected MSMEs and a MSME business loan portfolio of displaced people from conflicted areas currently living in Armenia to support their income generating business activities.

Why we fund this project

FMO shares directly the risk of the loan portfolio of displaced people, their enterprises and Covid-19 affected MSMEs with Araratbank. As a result, the risk sharing facility increases Araratbank’s risk appetite and incentivizes it to finance the underserved and marginalized communities in Armenia.

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, Araratbank will be required to apply the EDFI Exclusion List and (Country) E&S laws and regulations.

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Date Total FMO financing
6/16/2021 USD 9.33 MLN
Website client
http://www.araratbank.am
Region
Europe & Central Asia
Country
Armenia
Sector
Financial Institutions
Signing date
6/16/2021
Total FMO financing
USD 0.17 MLN
Fund
MASSIF
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