ARARATBANK - NASIRA PORTFOLIO
Status: Investment in contracting phaseWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
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 prospective customer?
ARARATBANK OJSC is a mid-sized universal bank in Armenia focusing on Micro, SME and Retail customers. The bank operates one of the largest branch network in the country, with 51 branches and 126 ATMs and employs 988 employees. Araratbank is an existing client of FMO since 2014 in the area of funding and technical assistance.
What is our funding objective?
We offer a risk sharing facility to Araratbank to support women/young/rural entrepreneurs, and MSME business loan portfolios in Armenia to support their income generating business activities.
Why do we want to fund this investment?
FMO shares directly the risk of the loan portfolio of women/young/rural entrepreneurs 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.
What is the Environmental and Social categorization rationale?
The project has been categorized as Category B in accordance with FMO’s Sustainability Policy. The Project’s activities are deemed to have 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.
More investments
| Date | Total FMO financing |
|---|---|
| 6/16/2021 | USD 0.17 MLN |
| 6/16/2021 | USD 9.33 MLN |
| 2/10/2023 | USD 0.23 MLN |
- Website customer/investment
- http://www.araratbank.am
- Region
- Europe & Central Asia
- Country
- Armenia
- Sector
- Financial Institutions
- Publication date
- 1/11/2023
- Deadline for feedback
- 2/10/2023
- Total FMO financing
- USD 9.27 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) - B