ACBA Credit Agricole MSME Loan

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The EBRD is considering a loan to Armenia’s ACBA Credit Agricole Bank (ACBA-CA) for expansion of its lending to micro, small and medium-sized enterprised (MSMEs), including in the rural areas, matching the demand for longer-term, local currency funding from local businesses. A aenior A/B loan to ACBA Credit Agricole Bank (ACBA-CA) in the amount of up to US$ 30m equivalent in Armenian Drams (AMD) would consist of the A portion of the loan of up to US$15m equivalent in AMD, and the remaining B portion of the loan of up to US$ 15m equivalent in AMD will be syndicated to other financial institutions. The project will provide longer term MSME funding in local currency in a market dominated by foreign currency-denominated loans. It will also demonstrate new ways of financing by showing that Armenian financial institutions can fund themselves through the syndication market. ACBA-Credit Agricole is the largest bank in Armenia by total assets and capital. ACBA-CA is a leading agri-finance provider in the country and a significant player in the MSME segment with a well-established branch network and franchise. Up to US$ 15m equivalent in AMD. Up to US$ 30m equivalent in AMD. Categorised FI. ACBA-CA is an existing Client of the Bank and has adopted an Environmental Policy and Environmental and Social Procedures, which largely satisfy requirements of PR 2 and 9. Required actions to achieve full compliance with the PRS have been communicated to the Client. Since 2008, ACBA-CA has been benefiting from technical assistance to support its SME lending under Armenian Multi-Bank Financing Framework Facility. The funding is provided by EBRD Early Transition Country Fund (ETCF). Previously, between 2006 and 2007, TC was provided to the bank for the development of sustainable MSME lending operations with a focus on microenterprises under the Armenia Microlending Programme. The funding was provided by USAID through the US/EBRD SME Financing Facility. No new technical cooperation is envisioned for this project. ACBA Credit Agricole Bank 1, Bayron street, Yerevan, Armenia Phone: +374 10 31 88 88 E-mail: acba@acba.am website : www.acba.am