MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Issues $12.5m in Local Currency Loans to Armenia’s Agricultural Cooperative Bank of Armenia-Credit Agricole Bank (ACBA) to Support Micro-, Small and Medium-Sized Enterprises (MSMEs), Energy Efficient Investments

The UK-based European Bank for Reconstruction and Development (EBRD), a multilateral institution that finances development projects, has provided two local-currency loans totaling the equivalent of USD 12.5 million to Agricultural Cooperative Bank of Armenia-Credit Agricole Bank (ACBA), a microfinance bank partially owned by French bank Credit Agricole [1]. The first loan, equivalent to USD 9 million, is projected to support on-lending to micro-, small and medium-sized enterprises (MSMEs) in Armenia. The second loan, equivalent to USD 3.5 million, has been made under the Caucasus Energy Efficiency Program (CEEP), an EBRD facility that supports on-lending for energy-efficient investments in Armenia, Azerbaijan and Georgia. The second loan is intended for ACBA’s retail clients as well as MSMEs.

As of 2011, ACBA reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 574 million, a gross loan portfolio of USD 362 million, 121,000 active borrowers, deposits of USD 159 million, 230,000 depositors, return on assets (ROA) of 3.02 percent and return on equity (ROE) of 14.04 percent. As of 2012, EBRD has invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

By Nisha Koul, Research Associate

About Agricultural Cooperative Bank of Armenia-Credit Agricole Bank (ACBA): Agricultural Cooperative Bank of Armenia (ACBA) was founded by the Agricultural Cooperative Regional Unions of the three Armenian provinces of Shirak, Armavir and Ararat and obtained a full banking license on March 29, 1996. ACBA was initially created to finance small and medium-sized agricultural enterprises and individual farmers. In the next few years the bank began to finance non-agricultural activities. In 2006, Credit Agricole SA France made an investment in ACBA and the bank was reorganized into ACBA-Credit Agricole Bank closed joint stock company. As of 2011, ACBA reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 574 million, a gross loan portfolio of USD 362 million, 121,000 active borrowers, deposits of USD 159 million, 230,000 depositors, return on assets (ROA) of 3.02 percent and return on equity (ROE) of 14.04 percent.

About European Bank for Reconstruction and Development (EBRD): The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

Sources and Additional Resources:

[1] EBRD News, “EBRD provides US$ 12.5 million local currency financing package to ACBA Credit Agricole Bank in Armenia,” http://www.ebrd.com/pages/news/press/2013/131022.shtml

MicroCapital Story, May 7, 2013, “European Fund for Southeast Europe (EFSE) to Loan $16m to ACBA-Credit Agricole Bank of Armenia,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-to-loan-16m-to-acba-credit-agricole-bank-of-armenia/

MicroCapital Story, March 18, 2013, “AccessBank of Azerbaijan Borrows $4.2m from European Bank for Reconstruction and Development (EBRD) for Energy Efficient Remodel of Headquarters,” https://www.microcapital.org/microcapital-brief-accessbank-of-azerbaijan-borrows-4-2m-from-european-bank-for-reconstruction-and-development-ebrd-for-energy-efficient-remodel-of-headquarters/

MicroCapital Story, February 4, 2013, “European Bank for Reconstruction and Development (EBRD) Loans $5m in Local Currency to Converse Bank of Armenia to Support Micro-, Small and Medium-sized Enterprises (MSMEs),” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-5m-in-local-currency-to-converse-bank-of-armenia-to-support-micro-small-and-medium-sized-enterprises-msmes/

MicroCapital Universe Profile, Agricultural Cooperative Bank of Armenia-Credit Agricole Bank (ACBA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACBA

MicroCapital Universe Profile, European Bank for Reconstruction and Development (EBRD), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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