Status: Approved investment
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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

Electric Networks of Armenia CJSC is the client, established in Armenia as a closed joint stock company (ENA). ENA is the sole electricity distribution company in Armenia.

What is our funding objective?

ENA plans to invest more than USD130m during the period 2021-2023/24. The European Bank for Reconstruction and Development (“EBRD”) and the Asian Development Bank (“ADB”) were mandated and will fund USD 60m (net) and USD20m (net), respectively. Under EBRD’s syndication, FMO’s B-Loan stands at USD 10m. ENA will fund the remainder from its cash flows. The investment objective and rationale are as follows: (i) the reconstruction and modernization of ENA’s existing substations and lines and replacement of outdated equipment; (ii) the expansion of the automated electricity metering system (reading and billing); (iii) the expansion of the network and connection of new users; and (iv) installation of a new automatic control system and other auxiliary investments. EBRD and ADB signed their first loan agreements in July 2017, with FMO then taking a USD10m B-Loan with the EBRD (remaining amount is about USD6.3m). For this “Phase 2” Investment, FMO also participated for USD 10 mln under EBRD Syndicated loan agreement.

Why do we fund this investment?

ENA’s investments contribute to a.o. an improved distribution network with lower technical losses, better metering and more electricity to end-users in need. Supporting the funding of ENA’s investments fits well with FMO’s strategy, which includes a.o. (i) contributing to energy savings (by a.o. reducing technical losses, better metering, etc.) and (ii) enabling more and better connections with all end-users of electricity.

What is the Environmental and Social categorization rationale?

FMO E&S category for this transaction is B+, reflecting health and safety risks to employees and communities, pollution (oil contamination at storage sites), and potential impacts on informal land users, biodiversity and cultural heritage. IFC PS1-4 are triggered; 5, 6 and 8 may potentially be triggered due to the nature of the distribution network, spread over the country. IFC PS7 is not expected to be triggered as the project is not likely to impact communities of indigenous people. Explicit reference is made to EBRD’s ex ante Disclosure and Project Summary Documents: this can be found at EBRD’s website (i.e.:

More investments

Date Total FMO financing
12/4/2017 USD 10.00 MLN
Europe & Central Asia
Publication date
Effective date
Total FMO financing
USD 10.00 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)