Project detail - Ameriabank Closed Joint Stock Company

Who is our prospective customer?

Ameriabank is a privately-owned bank in the Republic of Armenia. The bank distinguishes itself by being a universal bank providing an extensive range of financial and advisory services through its omni-channel distribution, with a focus on the Corporate, Small and Medium-sized Enterprises (SME) and Retail segments. With a workforce of more than 2000 staff (with 67% being female), the bank serves customers through its head office, 26 branches, and one of the largest ATMs and POS network in the country. Ameriabank is an existing and longstanding client of FMO since 2009 and retains a leading position in the banking sector of the country, with a ~20.2% market share when measured by loan portfolio.

What is our funding objective?

The new EUR 120mln FMO loan will be used by Ameriabank for at least 25% to finance green eligible projects under FMO’s Master Green List criteria, while the remaining amount will finance eligible Reducing Inequalities projects, being Micro, Youth/Women/Agri SMEs.

Why do we want to fund this investment?

Armenia remains a lower middle-income country (LMIC), as a material part of its population (42.5%) lives below the poverty line. Despite the significant presence of MSMEs, their contribution is only about 25% of GDP and 19% of employment, with limited access to credit. Due to this, MSMEs are fundamental to the overall socio-economic development of the country. In addition, Armenia’s heavy reliance on energy imports and outdated infrastructure makes sustainable energy development crucial, with renewable sources like solar, wind, and hydropower offering potential solutions. Green loans are vital for funding these renewable energy projects and modernizing infrastructure, driving both environmental and economic benefits while reducing dependency on fossil fuels. Due to this, FMO’s financing will be used by Ameriabank to support both Green loans (at least 25%) and loans to MSMEs, Agri, Youth and Women.

What is the Environmental and Social categorization rationale?

In relation to E&S risk we note that Ameriabank has a sizeable portfolio exposure to high-risk sectors of the productive Corporate and SME portfolio: agriculture, forestry and fishing, construction, manufacturing and mining and quarrying. Approximately 22% of the portfolio is exposed to 23 IFC Performance Standard Triggered Transactions (11 in agriculture, 11 in residential buildings construction and 1 in electricity production). Ameriabank has expressed a strong commitment to sustainability and E&S risk management, which is also fostered by shareholders Lion Finance Group and EBRD. Assessment, monitoring and mitigation process is robust before approvals granted. Environmental and Social Management System (ESMS) and risk management are considered of high quality. Overall outcome for Ameriabank is E&S category A risk.

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