Triodos Investment Management provides EUR 3 million funding to AraratBank to boost SME growth

09.12.2020 15:37
Triodos Investment Management provides EUR 3 million funding to AraratBank to boost SME growth

YEREVAN, December 8. /ARKA/. AraratBank and Triodos Fair Share Fund and Triodos Microfinance Fund, two financial inclusion investment funds managed by Triodos Investment Management from the Netherlands, concluded a bilateral loan agreement for a total amount of EUR 3 million for further support of local businesses.

Focusing on green lending projects and supporting women in business, this loan will enable AraratBank to further expand its tailored financial products to meet the needs of SMEs. This will strengthen the development of this important sector while creating jobs and keeping the economy growing in the country, which is imperative in times of Covid-19 and a post war period.

“We are delighted to receive funding from a reliable partner such as Triodos Investment Management, especially these days when it is more than a necessity for SME’s to receive additional support and to improve their access to finance. With constructive business solutions we have always been supporting SMEs in responding to present-day challenges, adapting to changes, realizing the most ambitious plans and conquering new heights by uncovering their business potential. It is noteworthy that so far we have provided more than EUR 143 million to 3908 small and medium enterprises and it is continuously growing. In this context, AraratBank initiatives contribute to increasing the competitiveness of SMEs and shared growth in Armenia. I assure that we develop new strategies and preserve the role of a lifelong partner for businesses,” said Mher Ananyan, Chairman of the Executive Board of AraratBank.

Rosanna Sarkeyeva, Regional Manager for Europe, Caucasus and Central Asia, Triodos Investment Management, in turn, noted: “AraratBank plays a very important role in addressing the current and future needs of the SME sector in Armenia, a sector which not only sustains and advances businesses but also forms the backbone of the country’s economy. Very important to us is that this loan enables AraratBank to further expand its focus on green lending products and women-led businesses, and to contribute to a robust financial infrastructure to mitigate the impact of COVID-19 and ease the consequences of the war”.

About Triodos Investment Management

Triodos Investment Management (Triodos IM) connects a broad range of investors who want to make their money work for lasting, positive change with innovative entrepreneurs and sustainable businesses doing just that.

In doing so, Triodos IM serves as a catalyst in sectors that are key in the transition to a world that is fairer, more sustainable and humane. It has built up in-depth knowledge throughout 25 years of impact investing in sectors such as Energy & Climate, Financial Inclusion and Sustainable Food & Agriculture, and also invests in listed companies that materially contribute to the transition toward a sustainable society. Triodos IM is a globally active impact investor with 750+ investments in over 50 countries with EUR 4.9 billion in assets under management (as per end of June 2020). It is a wholly owned subsidiary of Triodos Bank NV, which was founded in 1980 in the Netherlands and is a leading expert in sustainable banking globally.

About AraratBank

Founded in 1991, ARARATBANK OJSC is one of the leaders in the Armenian banking sector, providing the latest and highest quality banking services to both individuals and legal entities, applying cutting-edge technologies to develop banking services and creating a special business culture in bank-client relations.

With the innovative banking technologies and best practices of corporate governance, the bank has 56 branches across the country. ARARATBANK actively participates in the real sector of Armenian economy, particularly in SME lending. ARARATBANK cooperates with 16 reputable international financial institutions.

By reporting a stable growth of financial indicators year on year, ARARATBANK takes its unique position in the banking sector of the Republic of Armenia. Despite the global challenges, the Bank succeeded in ensuring the stability of key financial indicators. Thus, as of the performance indicators in late September, total assets stood at USD 487.0 million. Loan portfolio stood at USD 296.1 million, with the share of corporate loans totaling 55․2% (USD 163.3 million) and the share of retail loans totaling 46.8% (USD 138.4 million) in the loan portfolio.

Total liabilities in the reporting period stood at USD 406.3 million. The share of borrowings from IFIs in total liabilities stood at around 31.8% or USD 129.2 million, the share of term deposits stood at 24.3% or USD 98.9 million, while the share of demand deposits stood at 21.9% or USD 88.8 million. In 2020, the Bank succeeded in reporting growth of term deposits by USD 24 million (32.1%).

Total capital reported growth of USD 80.7 million as compared to the indicator of the previous year – USD 77.7 million. In 2020, a nine-month net profit stood at USD 4.3 million. Despite the challenges in 2020, ARARATBANK managed to maintain the ratios of capital adequacy at 15.28% and total liquidity at 24.78% as of September. --0--

Tags: Новости Армении АМИ Новости-Армения

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