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%.