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Supporting Armenian SMEs and green projects
Project
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Signature date
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Location
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Armenia
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Financing tool
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Financing amount (Euro)
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8840169
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Financing details
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USD 10m loan
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Customer
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Armeconombank OJSC
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Type of customer
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Financial institution
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Country of headquarters
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Armenia
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Project number
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PAM1013
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Environmental and social ranking
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IF-C
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Climate co-benefits
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Project with climate co-benefits
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco has partnered for the first time with the Armenian bank Armeconombank to support its objective of financing SMEs and projects with climate co-benefits.
Client presentation
Armeconombank is a universal bank and the 8th largest in the country in terms of portfolio size, with 4.4% of the Armenian market at the end of 2020. It has seen strong growth in its portfolio in recent years and benefits from a longstanding tradition of cooperation with DFIs. It is mainly positioned in the segments of private individuals and MSMEs.
Project description
This USD 10m credit line is the first cooperation project between Proparco and Armeconombank. The funds will be allocated by Armeconombank to finance SME clients, a segment where it has experience and one of the bank’s strategic focuses for its development. Up to 10% of the project funds may also be allocated to green projects with climate co-benefits (renewable energies and energy efficiency).
Project impact
This operation will help Armeconombank strengthen its range of loans for SMEs, which account for about 40% of GDP and provide 30% of jobs in Armenia. It should contribute to supporting over 6,500 jobs over the next 5 years, mainly in the client SMEs.