<div><h2>Project Description</h2><p></p><p>Senior unsecured loan to Armeconombank in the amount of up to USD 10 million in local currency under the Financial Intermediaries Framework ("FIF") for on-lending to private micro, small and medium enterprises ("MSMEs") in Armenia.</p><p> </p><p></p><h2>Project Objectives</h2><p></p><p>The project will improve access to finance for SMEs, which are the main source of employment in the private sector and a major contributor to the economy in Armenia. The loan will enable Armeconombank to increase outreach and meet unsatisfied demand for longer term funding from MSMEs. The focus will also be on lending in the regions outside the capital and attracting new MSME clients. Moreover, the bank will aim to on-lend the proceeds of the loan to women-led MSME's, promoting economic inclusion of female entrepreneurs. </p><p> </p><p></p><h2>Transition Impact</h2><p>ETI score: 60</p><p style="margin-top: -13px;"></p><p><strong>Competitive: </strong>Project will expand its SME portfolio, with a focus on reaching regional clients and attracting new clients. It is in line with the FIF conditions in medium gap countries.</p><p><strong>Resilient: </strong>The project aims to ensure prudent lending practices and adequate portfolio quality. </p><p></p><h2>Client Information</h2><p>ARMENIAN ECONOMY DEVELOPMENT BANK OJSC (ARMECONOMBANK)</p><p style="margin-top: -13px;"></p><p><strong>OJSC Armeconombank </strong>is a long-standing EBRD partner bank. AEB ranked 7th in the sector by total assets and 6th by loan portfolio with 5.1% and 5.7% market shares respectively as of YE2023. The bank has an extensive distribution network of 54 branches across all the regions of Armenia and over 900 employees. </p><p></p><h2>EBRD Finance Summary</h2><p>										USD 10,000,000.00									</p><h2>Total Project Cost</h2><p>										USD 10,000,000.00									</p><h2>Additionality</h2><p></p><p><strong>Financing structure: </strong>EBRD offers a tenor, which is longer than available to the client in the market on reasonable terms and conditions.</p><p><strong>Standard-setting: helping projects and clients achieve higher standards: </strong>Client seeks/makes use of EBRD expertise on higher financial standards, including through financial covenants.</p><p><strong>Gender SMART: </strong> Client seeks/makes use of EBRD expertise for the adoption of gender standards and/or equal opportunities action plans.</p><p> </p><p></p><h2>Environmental and Social Summary</h2><p></p><p>Categorised FI (2019 ESP). AEB's past performance and annual environmental and social (E&amp;S) reporting to date for the existing exposures have been acceptable. Armeconombank will need to ensure further compliance with PRs 2, 4 &amp; 9 and EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans, and TFP Environmental and Social Procedures, and will be required to submit annual environmental and social reports to the EBRD.</p><p></p><h2>Technical Cooperation and Grant Financing</h2><p></p><p><strong>TC:</strong> None</p><p><strong>Non-TC: </strong>The project will benefit from FLRC of 12.5% under the SME LCY Programme.</p><p></p><h2>Company Contact Information</h2><p>Astghik Manrikyan<br/>manrikyan@aeb.am<br/>+374-8000-8686<br/>www.aeb.am<br/>0002, Yerevan, Amiryan str.23/1<br/></p><h2>PSD last updated</h2><p>08 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 = "54491";					</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 - MSME Loan - Armeconombank

Senior unsecured loan to Armeconombank in the amount of up to USD 10 million in local currency under the Financial Intermediaries Framework FIF for on-lending to private micro, small and medium enterprises MSMEs in Armenia. The project will improve access to finance for SMEs, which are the main source of employment in the private sector and a major contributor to the economy in Armenia. The loan will enable Armeconombank to increase outreach and meet unsatisfied demand for longer term funding from MSMEs. The focus will also be on lending in the regions outside the capital and attracting new MSME clients. Moreover, the bank will aim to on-lend the proceeds of the loan to women-led MSME's, promoting economic inclusion of female entrepreneurs.  ETI score: 60Project will expand its SME portfolio, with a focus on reaching regional clients and attracting new clients. It is in line with the FIF conditions in medium gap countries.The project aims to ensure prudent lending practices and adequate portfolio quality. ARMENIAN ECONOMY DEVELOPMENT BANK OJSC ARMECONOMBANKis a long-standing EBRD partner bank. AEB ranked 7th in the sector by total assets and 6th by loan portfolio with 5.1 and 5.7 market shares respectively as of YE2023. The bank has an extensive distribution network of 54 branches across all the regions of Armenia and over 900 employees. USD 10,000,000.00USD 10,000,000.00EBRD offers a tenor, which is longer than available to the client in the market on reasonable terms and conditions.Client seeksmakes use of EBRD expertise on higher financial standards, including through financial covenants. Client seeksmakes use of EBRD expertise for the adoption of gender standards andor equal opportunities action plans. Categorised FI 2019 ESP. AEB's past performance and annual environmental and social ES reporting to date for the existing exposures have been acceptable. Armeconombank will need to ensure further compliance with PRs 2, 4 9 and EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans, and TFP Environmental and Social Procedures, and will be required to submit annual environmental and social reports to the EBRD. NoneThe project will benefit from FLRC of 12.5 under the SME LCY Programme.Astghik Manrikyanmanrikyanaeb.am+374-8000-8686www.aeb.am0002, Yerevan, Amiryan str.23108 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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