ACBA Bank is the 4th leading bank in Armenia in terms of the size of its balance sheet and is owned by cooperatives and the international subsidiary of Crédit Agricole. It benefits from a historical positioning as the leader in financing the agriculture sector, with a share of its portfolio in this sector of 35% at the end of 2019. At the same time, ACBA Bank also wants to develop its SME portfolio.
Proparco’s operation with ACBA Bank involves a USD 20m senior loan. The funds will be earmarked to finance the lending activity for SME and agricultural clients. It is the first partnership between Proparco and ACBA Bank.
The main expected economic and social impacts are as follows:
- Support for the economic development of Armenia by financing 500 SMEs, most of which operate in the agriculture sector and generally find it difficult to access financing;
- 25 direct jobs maintained at ACBA over the next 5 years and 12,750 indirect jobs at the SMEs which will be targeted by the credit line.
Through these various expected impacts on development, the project will therefore contribute to SDG 8 (Decent work and economic growth).
This information is given at the time of signature, without prejudice to any developments in the operation/project