INECOBANK CJSC
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Inecobank CJSC is an existing client of FMO. It is the 6th largest and most profitable bank in Armenia with strong focus on SME and retail business. The bank's shareholder base includes a mix of 2 local business men and 3 international development finance institutions (EBRD, IFC and DEG).
What is our funding objective?
The funds will be used to financing SME costumers of Inecobank. Another objective is to provide Inecobank with 5 year fixed rate funding in order to improve their risk management profile.
Why do we fund this investment?
FMO-A provides funding to Inecobank because: (i) it fits the need of our highly valued customer to attract long term fixed rate funding; and (ii) it is a good fit with FMO's strategy. FMO's loan will be used to finance Ineco’s SME portfolio, which supports job creation and maintenance in a LMIC where 30% of the population live below the poverty line (2014, Worldbank data). The transaction includes the option for Inecobank to increase the amount from USD 15m to USD 25m. Such increase will be funded by FIM managed funds, which support FMO's catalyzing target. This transaction contributes to SDGs 1 and 8.
What is the Environmental and Social categorization rationale?
Inecobank is E&S Risk category C.
More investments
| Date | Total FMO financing |
|---|---|
| 8/20/2020 | USD 15.00 MLN |
- Region
- Europe & Central Asia
- Country
- Armenia
- Sector
- Financial Institutions
- Effective date
- 10/6/2017
- End date
- 9/15/2022
- Total FMO financing
- USD 15.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C