EBRD has arranged a loan to Araratbank
The European Bank for Reconstruction and Development (EBRD) has arranged a loan to Araratbank for on-lending – and secured the participation of three international commercial banks in deal that increases assistance to the small businesses in Armenia. the European Bank for Reconstruction and Development will contribute US$ 3 million to the total US$ 12 million financing package, with the balance syndicated to Russia’s OJSC Promsvyazbank, and Lebanon’s Byblos Bank S.A.L and VDK Spaarbank nv of Belgium.
The deal also the first to Araratbank by VDK Spaarbank and Byblos Bank and represents Promsvyazbank’s first ever loan to an Armenian bank. It is the first time the EBRD has worked with these banks on the lending side. The loan to Araratbank falls within the EBRD’s Armenian Multi-Bank Framework Facility. It is a program which supports the sustainable development of the country’s banking sector. It provides debt financing and equity to leading financial institutions, small and medium-sized enterprises and focused on supporting micro.
The deal will promote its credibility with potential international partners in the future and marks the first syndicated loan to Araratbank. Araratbank is the 10th largest in Armenia In terms of assets. It aims to expand its network of 37 branches and has a strong customer base and. The EBRD owns about 25 per cent of the bank’s capital.