<div><h2>Project Description</h2><p></p><p>Portfolio Risk Sharing ("PRS") in the form of an unfunded guarantee of up to EUR 25m provided by the Bank in favour of ACBA Bank. The guarantee will cover up to 50% of the credit risk on a pro rata basis on the newly-generated MSME loan portfolio originated by ACBA Bank. </p><p></p><h2>Project Objectives</h2><p></p><p>This project is the first pilot implementation of the Portfolio Risk Sharing product by the EBRD in Armenia. The product aims to release a bank's risk-taking capacity to boost on-lending to SMEs, addressing an SME financing gap in the market. </p><p></p><h2>Transition Impact</h2><p>ETI score: 60</p><p style="margin-top: -13px;"></p><p>The transition impact of the project derives from Competitive and Resilient transition qualities: the facility will enable ACBA to further expand lending operations to the SME sector in Armenia and derisk ACBA's SME lending operations.</p><p></p><h2>Client Information</h2><p>ACBA BANK OJSC</p><p style="margin-top: -13px;"></p><p>ACBA bank is a long-standing partner bank of EBRD. It is the 4th largest bank in Armenia in terms of total assets and gross loan portfolio, with 8.5% and 10.8% respective market shares as of YE 2023. </p><p></p><h2>EBRD Finance Summary</h2><p>										EUR 25,000,000.00									</p><h2>Total Project Cost</h2><p>										EUR 50,000,000.00									</p><h2>Additionality</h2><p></p><p><strong>Innovative financing structures. </strong>EBRD offers an innovative financing structure on commercial terms not available from other banks. The project will support the development of a new risk sharing instrument on a portfolio basis of newly originated SME loans. </p><p><strong>Knowledge, innovation, and capacity building. </strong>EBRD provides expertise, innovation, knowledge and capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of the client for future structured finance projects.</p><p></p><h2>Environmental and Social Summary</h2><p></p><p>Categorised FI (ESP 2019). ACBA is a long-standing client of the EBRD and ACBA's past performance and annual environmental and social (E&amp;S) reporting to date for the existing exposures has been good. ACBA will need to continue to comply with Performance Requirements (PRs) 2, 4 &amp; 9 and further comply with the EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans; adhere to the EBRD's Environmental and Social Exclusion List as well as Referral List introduced with ESP 2019 and submit Annual E&amp;S Reports to the Bank. Sub-borrowers financed through ACBA's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.</p><p></p><h2>Technical Cooperation and Grant Financing</h2><p></p><p><strong>TC:</strong> Tailored capacity-building for MSMEs, especially for agri MSMEs to strengthen their agribusiness practices and capabilities in the export market via the Advice for Small Businesses team.</p><p><strong>Non-TC: </strong>The project will benefit from the First Loss Risk Cover provided by the European Fund for Sustainable Development (EFSD) Plus Programme. </p><p></p><h2>Company Contact Information</h2><p>Anzhelika Baghramyan<br/>Anzhelika.Baghramyan@acba.am<br/>+37410318888<br/>www.acba.am<br/>82-84 Aram str. / 0002 Yerevan  / Republic of Armenia<br/></p><h2>PSD last updated</h2><p>11 Apr 2024</p><div id="docsLinks" style="display:none"><h2>Related material</h2><ul class="relMat"></ul></div><script type="text/javascript">						var projFinderService = '/project-finder-json?1=1';						var projectId = "55335";					</script><h2>	Understanding Transition</h2><p>	Further information regarding the EBRD’s approach to measuring transition impact is available <a href="https://www.ebrd.com/what-we-do/economic-research-and-data/transition-impact.html">here</a>.</p><h2>	Business opportunities</h2><p>	For business opportunities or procurement, contact the client company.</p><p>	For business opportunities with EBRD (not related to procurement) contact:</p><p>	Tel: +44 20 7338 7168<br/>	Email: <a href="mailto:projectenquiries@ebrd.com">projectenquiries@ebrd.com</a></p><p>	For state-sector projects, visit <a href="https://www.ebrd.com/pages/workingwithus/procurement.shtml">EBRD Procurement</a>:<br/><br/>	Tel: +44 20 7338 6794<br/>	Email: <a href="mailto:procurement@ebrd.com">procurement@ebrd.com</a></p><h2>	General enquiries</h2><p>	Specific enquiries can be made using the <a href="https://www.ebrd.com/eform/information-request">EBRD Enquiries form</a>.</p><h2>	Environmental and Social Policy (ESP)</h2><p>	The <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">ESP</a> and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.</p><p>	More information on the EBRD’s practices in this regard is set out in the <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">ESP</a>.</p><h2>	Integrity and Compliance</h2><p>	The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.</p><p>	OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to <a href="mailto:compliance@ebrd.com">compliance@ebrd.com</a>. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.</p><h2>	Access to Information Policy (AIP)</h2><p>	The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the <a href="https://www.ebrd.com/what-we-do/strategies-and-policies/public-information-policy.html">Access to Information Policy</a> page to find out what information is available from the EBRD website.</p><p>	Specific requests for information can be made using the <a href="https://www.ebrd.com/eform/information-request">EBRD Enquiries form</a>.</p><h2>	Independent Project Accountability Mechanism (IPAM)</h2><p>	If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).</p><p>	IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">Environmental and Social Policy</a> or Project-specific provisions of its <a href="https://www.ebrd.com/what-we-do/strategies-and-policies/access-to-information-policy.html">Access to Information Policy</a>; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.</p><p>	Please visit the <a href="https://www.ebrd.com/project-finance/independent-project-accountability-mechanism.html">Independent Project Accountability Mechanism webpage</a> to find out more about IPAM and its mandate; how to <a href="https://www.ebrd.com/eform/IPAM/Request_form">submit a Request</a> for review; or contact IPAM  via email <a href="mailto:ipam@ebrd.com">ipam@ebrd.com</a> to get guidance and more information on IPAM and how to submit a request.</p><p>	 </p></div>

FIF - PRS - ACBA Bank EFSD+2

Portfolio Risk Sharing PRS in the form of an unfunded guarantee of up to EUR 25m provided by the Bank in favour of ACBA Bank. The guarantee will cover up to 50 of the credit risk on a pro rata basis on the newly-generated MSME loan portfolio originated by ACBA Bank. This project is the first pilot implementation of the Portfolio Risk Sharing product by the EBRD in Armenia. The product aims to release a bank's risk-taking capacity to boost on-lending to SMEs, addressing an SME financing gap in the market. ETI score: 60The transition impact of the project derives from Competitive and Resilient transition qualities: the facility will enable ACBA to further expand lending operations to the SME sector in Armenia and derisk ACBA's SME lending operations.ACBA BANK OJSCACBA bank is a long-standing partner bank of EBRD. It is the 4th largest bank in Armenia in terms of total assets and gross loan portfolio, with 8.5 and 10.8 respective market shares as of YE 2023. EUR 25,000,000.00EUR 50,000,000.00EBRD offers an innovative financing structure on commercial terms not available from other banks. The project will support the development of a new risk sharing instrument on a portfolio basis of newly originated SME loans. EBRD provides expertise, innovation, knowledge and capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of the client for future structured finance projects.Categorised FI ESP 2019. ACBA is a long-standing client of the EBRD and ACBA's past performance and annual environmental and social ES reporting to date for the existing exposures has been good. ACBA will need to continue to comply with Performance Requirements PRs 2, 4 9 and further comply with the EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans; adhere to the EBRD's Environmental and Social Exclusion List as well as Referral List introduced with ESP 2019 and submit Annual ES Reports to the Bank. Sub-borrowers financed through ACBA's loan will be required to comply with national environmental, health, safety and labour EHSL requirements. Tailored capacity-building for MSMEs, especially for agri MSMEs to strengthen their agribusiness practices and capabilities in the export market via the Advice for Small Businesses team.The project will benefit from the First Loss Risk Cover provided by the European Fund for Sustainable Development EFSD Plus Programme. Anzhelika BaghramyanAnzhelika.Baghramyanacba.am+37410318888www.acba.am82-84 Aram str. 0002 Yerevan Republic of Armenia11 Apr 2024Further information regarding the EBRD's approach to measuring transition impact is available here.For business opportunities or procurement, contact the client company.For business opportunities with EBRD not related to procurement contact:Tel: +44 20 7338 7168Email: projectenquiriesebrd.comFor state-sector projects, visit EBRD Procurement:Tel: +44 20 7338 6794Email: procurementebrd.comSpecific enquiries can be made using the EBRD Enquiries form.The ESP and the associated Performance Requirements PRs set out the ways in which the EBRD implements its commitment to promoting "environmentally sound and sustainable development".  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders' concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project's environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.More information on the EBRD's practices in this regard is set out in the ESP.The EBRD's Office of the Chief Compliance Officer OCCO promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to complianceebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.Specific requests for information can be made using the EBRD Enquiries form.If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful e.g. through the Client's Project-level grievance mechanism or through direct engagement with Bank management, individuals and organisations may seek to address their concerns through the EBRD's Independent Project Accountability Mechanism IPAM.IPAM independently reviews Project issues that are believed to have caused or to be likely to cause harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipamebrd.com to get guidance and more information on IPAM and how to submit a request.

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