ARARATBANK - NASIRA PORTFOLIO
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.
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.
|Date||Total FMO financing|
|6/16/2021||USD 0.17 MLN|
- Website client
- Europe & Central Asia
- Financial Institutions
- Signing date
- Total FMO financing
- USD 9.33 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)