Green for growth fund to provide 5 million euro loan to Armenian ACBA-CREDIT AGRICOLE BANK

16.12.2013 15:52
Green for growth fund to provide 5 million euro loan to Armenian ACBA-CREDIT AGRICOLE BANK

YEREVAN, December 16. / ARKA /. The Green for Growth Fund and Armenian ACBA-CRÉDIT AGRICOLE BANK signed a EUR 5 million senior loan agreement. This credit facility is aimed at financing retail and business clients, predominantly SMEs, the bank said in a press release.

One of the largest banks in Armenia by total assets, ACBA-CRÉDIT AGRICOLE BANK  is a market leader in agricultural finance, with excellent market know-how and a strong presence in rural areas. The Bank sees a major business opportunity in expanding into EE finance to meet growing demand for financing in this area. The EE measures to be financed range from improvements to housing envelopes for retail clients to replacing inefficient and outdated machinery and equipment for business clients.

“As ACBA-CRÉDIT AGRICOLE BANK enjoys a strong market position and has an extensive rural outreach, this partnership is an important step forward in promoting energy efficiency savings in Armenia,” said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe.
“We are very pleased to partner with ACBA-CRÉDIT AGRICOLE BANK  to finance and foster investments in sustainable energy efficiency projects.”

“We are happy to start our cooperation with the Green for Growth Fund and highly appreciate their mandate in financing energy efficiency and renewable energy projects,” said Stepan Gishyan, CEO of ACBA-CRÉDIT AGRICOLE BANK .

“This project will enhance our capacities in targeting and financing sustainable energy projects of our clients”

The Green for Growth Fund, Southeast Europe (GGF) is dedicated to enhancing energy efficiency and fostering the use of renewable energy sources in Southeast Europe and Turkey as well as in the nearby European Eastern Neighbourhood region comprised of Armenia, Azerbaijan, Georgia, Moldova and Ukraine. The GGF provides refinancing to financial institutions for on-lending to enterprises and private households seeking to finance energy efficiency projects.

The GGF also invests directly in small to medium-scale renewable energy projects. To maximize the impact of the Fund’s investment activities, the GGF’s Technical Assistance Facility offers capacity building support to local financial institutions and partners.

ACBA-CREDIT AGRICOLE BANK is a key player in the Armenian banking system ranked first in terms of capital and 3rd in terms of assets as of 3Q 2013. The Bank’s primary strategic focus is on providing financial services to micro, small and medium enterprises (MSMEs) with a particular focus on rural areas.

The Company was founded in March 1996. In 2006 Credit Agricole acquired a 28% stake in ACBA’s capital thus becoming its largest shareholder. The Bank is owned by Credit Agricole (28%), a number of agricultural cooperatives (totaling 71%) and the bank’s management (1%). As of November 2013, ACBA had total assets of USD 657 million and loan portfolio of USD 388 million. -0-


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