<div><h2>Project Description</h2><p></p><p>Provision of a senior loan to Inecobank ("IB") of up to USD 7 million  under the SME Competitiveness and Inclusion Programme in Eastern Partnership ("EaP SMECI") established by the European Bank for Reconstruction and Development ("EBRD") in cooperation with the European Union ("EU") to be on-lent to eligible micro, small and medium sized enterprises ("MSMEs").</p><p></p><h2>Project Objectives</h2><p></p><p>The project will enable IB to finance long-term investments of Armenian MSMEs in upgrading their production facilities and processes to achieve compliance with the EU standards, including investments in sustainable and green technologies, thus facilitating competitiveness of Armenian MSMEs in the European and domestic markets. In addition to long-term financing, eligible sub-borrowers will benefit from investment incentives upon successful completion of their investment projects. At least 70 per cent of all financed sub-loans are expected to be compliant with EBRD Green Economy Transition ("GET") approach. </p><p></p><h2>Transition Impact</h2><p>ETI score: 75</p><p style="margin-top: -13px;"></p><p><strong>Competitive:</strong> IB will expand its MSME loan portfolio with a specific focus on financing priority investments complying with EU directive(s), ultimately facilitating competitiveness of Armenian MSMEs.</p><p><strong>Resilient:</strong> IB is expected to maintain strong loan portfolio quality.</p><p></p><h2>Client Information</h2><p>INECOBANK CJSC</p><p style="margin-top: -13px;"></p><p><strong>Inecobank CJSC</strong> is a long standing EBRD partner bank. IB is the 5th largest bank in Armenia by total assets and loan portfolio with 6.4% and 6.6% respective market shares as of YE 2023.</p><p></p><h2>EBRD Finance Summary</h2><p>										USD 7,000,000.00									</p><h2>Total Project Cost</h2><p>										USD 7,000,000.00									</p><h2>Additionality</h2><p></p><p><strong>Financing structure:</strong> EBRD offers a tenor, which is above the market average and is necessary to structure the project.</p><p><strong>Innovative financing structures and/or instruments:</strong> EBRD offers an innovative green finance instrument that integrates aspects such as climate and environmental, social and governance ("ESG") standards and/or climate and ESG risk considerations into the financing structure. For instance, adjusting level of concessionality to reflect level of climate risk and/or positive climate benefits, such as greenhouse gas reductions and climate resilience benefits.</p><p><strong>Knowledge, innovation and capacity building:</strong> EBRD provides expertise, innovation, knowledge and/or capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of the MSMEs.</p><p></p><h2>Environmental and Social Summary</h2><p></p><p>Categorised FI (2019 ESP). IB is an existing client and performs in compliance with the environmental and social ("E&amp;S") requirements under existing exposures. IB will need to continue to comply with PRs 2, 4 &amp; 9, implement the EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans, including adherence to the EBRD E&amp;S Exclusion List and Referral List introduced with ESP 2019, and submit annual environmental and social reports to EBRD. Sub-borrowers financed through the 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>The project includes a comprehensive technical cooperation programme funded by the EU. The objective of the technical cooperation is to assist financial intermediaries in Armenia, including IB, in successful implementation of the project, including marketing, pre and post finance assessment of sub-projects as well as general monitoring and reporting. Furthermore, the loan is complemented by EU funded grant of EUR 0.83m to be allocated to eligible sub-borrowers in form of investment incentives to stimulate investments in technologies meeting EU standards including investments in sustainable and green technologies.  </p><p></p><h2>Company Contact Information</h2><p>Hayk Voskanyan<br/>Hayk.Voskanyan@inecobank.am<br/>https://www.inecobank.am<br/></p><h2>PSD last updated</h2><p>18 Apr 2024</p><div id="docsLinks" style=""><h2>Related material</h2><ul class="relMat"><li><a href="https://www.ebrd.com/work-with-us/projects/psd-translation/55403/1395319970057/FIF_-_EaP_SMECI_III_-_InecoBank_(Armenian).pdf?blobnocache=true" title="Download document">Translation: FIF - EaP SMECI III - InecoBank (Armenian)</a> <i class="glyphicon glyphicon-download-alt"></i><br/><small>Type: PDF, Published: 26.04.2024, Language: Armenian</small></li></ul></div><script type="text/javascript">						var projFinderService = '/project-finder-json?1=1';						var projectId = "55403";					</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 - EaP SMECI III - InecoBank

Provision of a senior loan to Inecobank IB of up to USD 7 million  under the SME Competitiveness and Inclusion Programme in Eastern Partnership EaP SMECI established by the European Bank for Reconstruction and Development EBRD in cooperation with the European Union EU to be on-lent to eligible micro, small and medium sized enterprises MSMEs.The project will enable IB to finance long-term investments of Armenian MSMEs in upgrading their production facilities and processes to achieve compliance with the EU standards, including investments in sustainable and green technologies, thus facilitating competitiveness of Armenian MSMEs in the European and domestic markets. In addition to long-term financing, eligible sub-borrowers will benefit from investment incentives upon successful completion of their investment projects. At least 70 per cent of all financed sub-loans are expected to be compliant with EBRD Green Economy Transition GET approach. ETI score: 75 IB will expand its MSME loan portfolio with a specific focus on financing priority investments complying with EU directives, ultimately facilitating competitiveness of Armenian MSMEs. IB is expected to maintain strong loan portfolio quality.INECOBANK CJSC is a long standing EBRD partner bank. IB is the 5th largest bank in Armenia by total assets and loan portfolio with 6.4 and 6.6 respective market shares as of YE 2023.USD 7,000,000.00USD 7,000,000.00 EBRD offers a tenor, which is above the market average and is necessary to structure the project. EBRD offers an innovative green finance instrument that integrates aspects such as climate and environmental, social and governance ESG standards andor climate and ESG risk considerations into the financing structure. For instance, adjusting level of concessionality to reflect level of climate risk andor positive climate benefits, such as greenhouse gas reductions and climate resilience benefits. EBRD provides expertise, innovation, knowledge andor capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of the MSMEs.Categorised FI 2019 ESP. IB is an existing client and performs in compliance with the environmental and social ES requirements under existing exposures. IB will need to continue to comply with PRs 2, 4 9, implement the EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans, including adherence to the EBRD ES Exclusion List and Referral List introduced with ESP 2019, and submit annual environmental and social reports to EBRD. Sub-borrowers financed through the loan will be required to comply with national environmental, health, safety and labour EHSL requirements.The project includes a comprehensive technical cooperation programme funded by the EU. The objective of the technical cooperation is to assist financial intermediaries in Armenia, including IB, in successful implementation of the project, including marketing, pre and post finance assessment of sub-projects as well as general monitoring and reporting. Furthermore, the loan is complemented by EU funded grant of EUR 0.83m to be allocated to eligible sub-borrowers in form of investment incentives to stimulate investments in technologies meeting EU standards including investments in sustainable and green technologies.  Hayk VoskanyanHayk.Voskanyaninecobank.amhttps:www.inecobank.am18 Apr 2024Translation: FIF - EaP SMECI III - InecoBank Armenian Type: PDF, Published: 26.04.2024, Language: ArmenianFurther 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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