ArmInfo. FMO (Dutch Entrepreneurial Development Bank) and Ameriabank CJSC signed USD 20 million equivalent Local Currency Facility Agreement channeled to "green" projects and youth financing in Armenia.
According to the press service of Ameriabank, this is the first local currency loan issued by FMO on its own books in Armenia. The 7-year facility will be dedicated to renewable energy and energy efficiency projects as well as first time home mortgage, education and business loans to persons younger than 35.
"This is another remarkable achievement which we celebrate with our long-standing partner FMO since 2009. This agreement creates new opportunities for the economic development of the country and for improving welfare of the population. Financing of renewable energy and energy efficiency projects will further promote sustainable development of the energy sector while ensuring efficient use of energy amongst the enterprises and population. New funding opportunities for young people will trigger growth of entrepreneurship in our country and will raise the living standards of the population", - said Artak Hanesyan, Chairman of the Management Board-CEO at Ameriabank.
FMO's Chief Investment Officer Linda Broekhuizen commented: "FMO is proud of its strong and successful relationship with Ameriabank, supporting the further economic development of Armenia. This new loan facility will enable Ameriabank to support renewable energy and energy efficiency projects, and to increase access to finance to young entrepreneurs." According to the Financial Rating of the Banks of Armenia as of June 30, 2019, prepared by IC ArmInfo, Ameriabank's assets amounted to $ 1.7 billion (an increase of 15.8% y-o-y), credit investments - $ 1.2 billion (an increase of 11.3% y-o-y), total capital - $ 195.6 million (an increase of 9.4% y-o-y), total liabilities - $ 1.5 billion (an increase of 16.7% y-o-y) and net profit for the first half of the year - $ 11.7 million. By these indicators, Ameriabank holds the lead. Corporate lending dominates in the bank's loan portfolio - over 78% or $ 902.3 million (1st position), mainly with a focus on the industrial sector (including the energy complex) and trade. And in the bank's liabilities, over 27% or $ 405.7 million falls on the share of credit resources attracted under international programs, in terms of which Ameriabank holds the lead.
To note, FMO is the Dutch development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a more than 45-year proven track-record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: Financial Institutions, Energy, and Agribusiness, Food & Water. With a committed portfolio of EUR 9.6 billion spanning over 82 countries, FMO is one of the largest bilateral private sector development banks globally.