Ameriabank raises EUR 105 million from European Investment Bank for SME financing
YEREVAN, February 3. /ARKA/. Ameriabank has secured EUR 105 million in financing from the European Investment Bank (EIB Global), which is the largest direct loan ever provided by EIB Global to a South Caucasus bank.
This loan agreement emphasizes the mutual commitment of Ameriabank and EIB to stimulate economic development through private sector growth and support Armenia's transition to a green economy, Ameriabank said in a press release.
Through this deal, Ameriabank will offer affordable loans to micro, small and mid-cap companies, enabling them to invest in business growth, competitiveness and sustainable initiatives.
At least 20% of the funds will be used to finance green projects aimed at incentivizing environmental protection and sustainability. Part of the financing will be provided in AMD to protect MSMEs from currency risks.
SMEs are at the center of Ameriabank's focus
“EIB already has a significant contribution in financing infrastructure projects and we are honored that the lending will also be provided to SMEs,” said Ameriabank CFO Hovhannes Toroyan.
According to him, Ameriabank is Armenia's largest lender with a total loan portfolio of AMD 1.3 trillion, including a total SME portfolio of AMD 270 billion as of the end of 2024.
“We serve about 50,000 SMEs daily across the country,” he said.
Toroyan said the focus on green finance is also an important component of the loan agreement.
“Ameriabank has a background of cooperation with international financial organizations and investors to promote green investments in the country,” he said.
Since 2009, Ameriabank has raised $1.4 billion in financing from various international financial institutions, channeling the funds to vital economic sectors. With the assistance of international financial institutions and social investors, the bank has financed more than $250 million in energy efficiency and renewable energy projects,
This transaction follows a $200 million financing agreement between the International Finance Corporation (IFC) and Ameriabank, reinforcing the bank's strategic efforts to attract international financing for sustainable economic growth.
Supporting SMEs for the benefit of Armenia's economy
Head of the EU mission in Armenia, Ambassador Vasilis Maragos said that the deal shows the willingness to support the Armenian economy, as well as the spirit and talent of Armenian entrepreneurs.
“In addition, it also shows the sustainability of the Armenian banking sector,” he said.
According to Maragos, among the goals of the agreement are the creation of 15,000 new jobs, as well as the creation of new and strengthening of existing businesses as a support to the Armenian economy, in general.
EIB's fruitful cooperation with Armenia
“This deal is a landmark result of the cooperation between the EU, EIB and Armenian partners, which brings EIB's commitments in Armenia to almost €1 billion by 2024. We have practically doubled the volume of our entire portfolio. Among others, this is a serious marker of cooperation between EIB and Armenia, which includes many different projects,” said Mr. Maciej Chura, Head of EIB Regional Office for the South Caucasus.
He expressed hope that the fruitful cooperation between EIB and Armenia will continue also in 2025 and the years to come
Grant assistance for smoothing currency risks
“Our driving force is to promote prosperity and improve the living standards of our neighbors. Everything starts and ends with the economy, but we also need to enable people to live in dignity,” said Marion Honick, Head of Financial Inclusion at EIB's Department of Expansion and Neighborhoods.
She said that the loan agreement is complemented by grant assistance from the EU, aimed at mitigating currency risks in interest payments. However, Honik did not disclose the amount of the grant.
About Ameriabank
Ameriabank is a leading financial institution and plays an important role in Armenia's economy. Ameriabank's assets amount to about AMD 1.9 trillion. The Bank adheres to a customer-oriented policy to ensure high quality of service and banking experience in the modern digital environment. Ameriabank is committed to the principle of responsible business conduct and contributes to Armenia's transition to a sustainable future.
The Bank is controlled by the Central Bank of Armenia.
About EIB Global
The European Investment Bank (EIB) is the European Union's long-term lending institution, owned by member states. It finances investments that contribute to EU policy objectives. EIB Global is the professional arm of the EIB Group, aiming to expand the impact of international partnerships and financing, also a key partner of Global Gateway. By the end of 2027, €100 billion worth of investments are planned to be promoted, which is about 1/3 of the overall goal of this EU initiative.
EIB Global within Team Europe stimulates strong and targeted cooperation with development finance institutions and civil society. -0-
