FIF – EaP SMEC – ACBA II bank loan

Project description

Senior unsecured loan to ACBA Bank for up to $7 million for SME financing under the SME Competitiveness Program under the EAP (“SME Competitiveness Program”).

the project’s objectives

The project will enable ACBA to finance long-term investments by Armenian MSMEs in upgrading their technology and equipment needed to meet EU standards in terms of product quality, health and safety measures. safety and environmental protection. At least 70% of all funded sub-loans should be compliant with the EBRD’s Green Economy Transition (GET) approach. In addition to long-term financing, eligible sub-borrowers will receive technical assistance and support in the form of investment incentives upon completion of their investment projects.

Impact of transition

ETI rating: 75

The project is expected to remove the existing market barriers that SMEs face to undertake the necessary investments (limited access to medium and long term finance, lack of technical expertise for the identification and design of related improvements). The project will also strengthen ACBA’s capacity to appraise and finance targeted investments.

Customer information


ACBA Bank has been a long-standing partner bank of the EBRD since the first engagement in 2003 and one of the leading banks in Armenia. ACBA is the 4th bank in terms of total assets with a dominant position in lending to agriculture and MSMEs in rural areas in particular.

The shareholders of ACBA are:

  • Federation ACBA CJSC, non-profit organization, which brings together 10 agricultural unions in Armenia – 83.80%;
  • Crédit Agricole SA through its subsidiary Sacam International SJSC – 4.55%;
  • more than 5,000 shareholders, including legal and natural persons – 11.65% (shares are listed on the Armenian Stock Exchange).

EBRD Financial Summary


Total project cost



The project will provide long-term financing to ACBA Bank in a market dominated by short-term assets and liabilities. ACBA and its clients will benefit from the SMEC EaP capacity building program supporting the preparation and implementation of investment projects. Sub-borrowers will also receive financial incentives for successfully implemented sub-projects.

Environmental and social summary

FI rated (2019 ESP). The ACBA is a long-standing client of the EBRD. ACBA’s past performance and annual environmental and social (E&S) reports to date for existing exposures have been satisfactory. ACBA shall continue to comply with PRs 2, 4 and 9 and additionally comply with the EBRD’s environmental and social procedures for corporate, SME and microloan loans, and the environmental and social procedures of TFPs; adhere to the EBRD’s updated environmental and social exclusion list as well as the reference list introduced with ESP 2019 and submit annual E&S reports to the Bank. ACBA borrowers will be required to comply with applicable national environmental, health and safety and labor requirements. If EBRD funds are used to finance solar sub-projects, these sub-projects should be managed in accordance with “The Proposed Management Approach for Solar Supply Chain Risk Management” (CS/FO/ 21-35), (CS/FO/21-35 (Add 2)) and any subsequent guidance developed under this approach. The SMEC loan is in line with the GET approach and the GET share is 70%.

Technical Cooperation and Grant Financing

TC: the project will be supported by a comprehensive set of TCs funded by the European Union, with the aim of assisting the ACBA bank in capacity building, implementation and monitoring of the programme.

Excluding CT: Sub-projects will be eligible for incentive grants (up to 15% of the lesser of the investment cost or the amount of the respective disbursed sub-loan) financed by the European Union.

Company details

Anzhelika Baghramyan
[email protected]
+ 374 10 31 8888
82-84 Aram St. / 0002 Yerevan / Republic of Armenia

PSD latest update

August 31, 2022

Understanding Transition

More information on the EBRD’s approach to measuring transition impact is available here.

Professional opportunities

For business or procurement opportunities, contact the client company.

For business opportunities with the EBRD (non-procurement related), contact:

Tel: +44 20 7338 7168
Email: [email protected]

For public sector projects, visit BERD Procurement:

Tel: +44 20 7338 6794
Email: [email protected]

General Information

Specific requests can be made using the EBRD’s inquiry form.

Environmental and Social Policy (ESP)

The ESP and associated performance requirements (PRs) set out how the EBRD implements its commitment to promote “sustainable and environmentally responsible development”. The PSE and PRs include specific provisions for clients to comply with applicable requirements of national public information and consultation laws as well as establishing a grievance mechanism to receive and facilitate the resolution of concerns. and stakeholder grievances, particularly regarding the environmental and social performance of the client and the project. Proportionate to the nature and magnitude of a project’s environmental and social risks and impacts, the EBRD further requires its clients to disclose information, as appropriate, on the risks and impacts arising from the projects. or that they undertake extensive consultations with stakeholders and consider and respond to their feedback.

Further information on the EBRD’s practices in this regard can be found in the ESP.

Integrity and compliance

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 Bank activities in accordance with international best practices. Integrity due diligence is performed on all Bank clients to ensure that projects do not pose unacceptable risks to the integrity or reputation of the Bank. The Bank believes that identifying and resolving issues during the approval stages of project appraisal is the most effective way to ensure the integrity of Bank transactions. OCCO plays a key role in these safeguarding efforts and also helps monitor integrity risks in projects after investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, inside or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email at [email protected] All reported issues will be handled by OCCO for follow-up. All reports, including anonymous reports, will be investigated. Reports can be written in any language of the Bank or of the Bank’s countries of operations. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders in order to promote a better knowledge and understanding of its strategies, policies and operations after its entry into force on January 1, 2020. Please see the Access Policy page to the information to find out more. what information is available on the EBRD website.

Specific inquiries can be made using the EBRD’s inquiry form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the client or the Bank are unsuccessful (for example through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organizations can seek to address their concerns through the Independent Project Accountability Mechanism (IPAM).

IPAM independently investigates project issues that are suspected of causing (or likely to cause) harm. The objective of the mechanism is to: support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; determine whether the Bank has complied with its environmental and social policy or the project-specific provisions of its access to information policy; and, where appropriate, to remedy any existing non-compliance with these policies, while preventing any future non-compliance on the part of the Bank.

Please visit the Independent Project Accountability Mechanism webpage to learn more about IPAM and its mandate; how to submit a request for review; or contact IPAM by email [email protected] for advice and more information about IPAM and how to submit an application.

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