Thursday, March 26 2020 12:08

Ardshinbank and the Black Sea trade and development bank have signed a usd 20 million loan agreement

Ardshinbank and the Black Sea trade and development bank have signed a usd 20 million loan agreement

ArmInfo.The Black Sea Trade and Development Bank (BSTDB) granted Ardshinbank the fifth loan in the amount of $ 20 million to finance small and medium enterprises (SMEs) in Armenia. This deal demonstrates the close partnership between the  two banks and their common goal is to support the development of the  SME sector, Ardshinbank said in a statement.

According to the source, credit funds were provided for a period of 5  years, which makes it possible for Ardshinbank to carry out the  necessary medium-term financing for SMEs and to satisfy the needs of  subjects in this sphere in replenishing fixed and working capital.

"We greatly appreciate the long-term cooperation with BSTDB. At  present, when enterprises, especially small and medium-sized  businesses, are faced with economic difficulties, this financing  opportunity is more relevant than ever. We are ready to help SMEs in  solving their problems as soon as possible, which, in addition they  are exacerbated by the current emergency, "said Artak Ananyan,  Chairman of the Board of Ardshinbank.

"In these difficult times, the BSTDB is sympathetic to the efforts of  our Member States to curb the spread of coronavirus and reduce its  negative impact on people's lives, society and economic activity.  Given the current critical conditions and changes in market  assessments of risk and liquidity, BSTDB continues to provide  assistance and support for the most vulnerable segment of SMEs, which  our member countries and businesses need, "said Dmitry Pankin,  President of BSTDB.

Note that the Black Sea Trade and Development Bank (BSTDB) is an  international financial institution authorized to support economic  development and regional cooperation in the Black Sea region through  trade lending and project financing, issue guarantees and participate  in the share capital of private enterprises and state organizations  in member countries . The transaction is a continuation of the  successful cooperation between BSTDB and Ardshinbank, the start of  which dates back to 2012. From this moment to this day, Ardshinbank  has already attracted a total of $ 35 million in credit resources for  the development of small and medium-sized businesses.

Recall that Ardshinbank is a leading bank in Armenia with a wide  branch network. The share of SMEs in the loan portfolio of the bank  is 15%. Moreover, 46% of the SME Bank's portfolio falls to loans to  corporate customers and 39% to microloans and retail.

Ardshinbank is the first and so far the only private legal entity  from Armenia that is present in international capital markets. In  January 2020, Ardshinbank issued indexed Eurobonds in the amount of $  300 million, with a maturity of 5 years, at a yield of 6.5%, which  are listed on the Irish Stock Exchange. The majority shareholders of  Ardshinbank as of January 1, 2020 are Arins Group LLC with a 67.97%  equity interest and REGION Industrial and Financial Corporation CJSC  (RF) - 29.52%.

According to the Financial Rating of the Banks of Armenia as of  December 31, 2020 prepared by ArmInfo Investment Company, Ardshinbank  is included in TOP-3 in terms of credit investments amounting to 486  billion drams (over $ 1 billion). In terms of lending to SMEs,  Ardshinbank is included in TOP-5 with a volume of 72 billion drams ($  149.3 million). Ardshinbank completed the year 2019 with a net profit  of 9.9 billion drams ($ 20.6 million - the second position in the  market), with annual growth of 53%. 

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