Symbiotics arranges a Sustainability Bond in Armenia with AraratBank for USD 14.5 million

08.06.2021 15:16
Symbiotics arranges a Sustainability Bond in Armenia with AraratBank for USD 14.5 million

YEREVAN, June 8. /ARKA/. Symbiotics, the leading market access platform for impact investing, has arranged a USD 14.5 million Sustainability Bond for AraratBank. Proparco, the private sector financing arm of Agence Française de Développement Group (AFD Group), has made a USD 5 million subscription to this Sustainability Bond.

“With their support we trust to issue more Green and Sustainable bonds in the coming months and convince European investors to increase their investments in sustainable finance,” stated by Symbiotics press service.

The proceeds of the Sustainability Bond will finance both Social and Green eligible loans. Microenterprises and SMEs will benefit from the Social loans to encourage employment creation and business activity in the country. While Green loans will be dedicated to the promotion of renewable energy, energy efficiency, green buildings and clean transportation.

“With this Sustainability Bond issuance, AraratBank showcases its commitment to sustainable finance and promotion of environmentally and socially beneficial loans. Sustainability bond proceeds will be used to finance projects that support job creation and economic growth, as well as contribute to combating climate change,” said Daniel Schriber, Head of Investments of Symbiotics.

“By adopting a long-term strategy for sustainable development, AraratBank highlights favorable financing and investments to create a prosperous, sustainable future for society and businesses, prioritizing the financing of projects that will make cities and communities environmentally safe and sound in the long run,” said Mher Ananyan, Chairman of the Executive Board of AraratBank.

“We are pleased to be assisting a recognized player like Symbiotics with the development of this innovative and inclusive Sustainability Bond for AraratBank in Armenia. We need more green and social bonds for emerging markets. This project is fully in line with Proparco’s priorities and climate strategy”, said Gregory Clemente, Chief Executive Officer of Proparco.

This bond is issued via Symbiotics’ sponsored bond issuance platform (Micro, Small & Medium Enterprises Bonds S.A.) under its Sustainability, Social and Green Bond Framework, which was certified in December 2019 by DNV GL. The Sustainability Bond has been listed on the Luxembourg Green Exchange within the Sustainability Bond section. The Sustainability Bond proceeds have been fully used towards a 4-year, senior unsecured loan to AraratBank.

About Symbiotics

Symbiotics is the leading market access platform for impact investing, dedicated to financing micro- small and medium enterprises and low- and middle-income households in emerging and frontier markets. Since 2005, Symbiotics has structured and originated some 4,000 deals for over 450 companies in almost 90 emerging and frontier markets representing more than USD 5.5 billion. These investments have been purchased by more than 25 fund mandates and more than 50 third party specialized fund managers, forming a growing ecosystem and marketplace for such transactions.

About AraratBank

AraratBank open joint-stock company was founded in 1991, providing the latest and highest quality banking services to both individuals and legal entities, applying modern 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 53 branches across the country. AraratBank actively participates in the real sector of the Armenian economy, particularly in SME lending. AraratBank cooperates with 17 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. Thus, as of the performance indicators in Quarter 1, 2021, total assets stood at USD 501.8 million. Loan portfolio stood at USD 281.2 million, with the share of corporate loans totaling 54․8% (USD 154.1 million) and the share of retail loans totaling 47.7% (USD 134.1 million) in the loan portfolio.

Total liabilities in the reporting period stood at USD 426.3 million. The share of borrowings from IFIs in total liabilities stood at around 30.0% or USD 127.8 million, the share of term deposits stood at 23.5% or USD 100.3 million, while the share of demand deposits stood at 22.4% or USD 95.3 million. In Quarter 1, 2021, the Bank succeeded in reporting growth of term deposits by USD 12.9 million (14.8%).

Total capital reported growth of USD 75.5 million as compared to the indicator of the previous year – USD 73.2 million. In Quarter 1, 2021, net profit stood at USD 3.4 million. In Quarter 1, AraratBank provided capital adequacy of 14.73% and total liquidity of 27.49%.

About Proparco

Proparco is the private sector financing arm of Agence Française de Développement Group (AFD Group). It has been promoting sustainable economic, social and environmental development for over 40 years. Proparco provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America and the Middle-East. Its action focuses on the key development sectors: infrastructure, mainly for renewable energies, agribusiness, financial institutions, health and education.

Its operations aim to strengthen the contribution of private players to the achievement of the Sustainable Development Goals (SDGs) adopted by the international community in 2015. To this end, Proparco finances companies whose activity contributes to creating jobs and decent incomes, providing essential goods and services and combating climate change. For a World in Common. @Proparco. -0-

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