Araratbank Open Joint Stock Company
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
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
ARARATBANK OJSC is a mid-sized universal bank in Armenia focusing on Micro, SME and Retail customers. The bank operates the 3rd largest branch network in the country and employs around 950 staff. ARARATBANK is an existing client of FMO since 2014 in the area of funding and technical assistance.
What is our funding objective?
The intended 5 year loan will be used to finance a combination of eligible youth and women MSME customers of ARARATBANK.
Why do we fund this investment?
Reducing inequalities is at the heart of FMO’s strategy. This new loan meets the United Nations Sustainable Development Goals supporting women and young MSME entrepreneurs with access to finance. Furthermore, this proposed loan provides ARARATBANK with stable long term funding, which indirectly contributes to economic development in Armenia.
What is the Environmental and Social categorization rationale?
Low risk, C-category. The bank has a well-functioning ESMS that covers the whole loan book. No exposure to IFC PS triggered transactions, no exclusion list exposure, limited high risk E&S exposure, no project finance and an overall low average loan size.
More investments
| Date | Total FMO financing |
|---|---|
| 5/17/2021 | USD 25.00 MLN |
| 10/22/2019 | USD 10.00 MLN |
| 8/29/2019 | USD 7.50 MLN |
| 8/29/2019 | USD 10.00 MLN |
| 10/30/2024 | USD 10.00 MLN |
- Website customer/investment
- https://www.araratbank.am/en/about/about_332.html
- Region
- Europe & Central Asia
- Country
- Armenia
- Sector
- Financial Institutions
- Publication date
- 3/2/2018
- Effective date
- 4/12/2018
- End date
- 4/24/2023
- Total FMO financing
- USD 20.00 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