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Continuing support for the Armenian bank ACBA

Project

Financial services
Signature date
Location
Armenia
Financing tool
Equity investment
Financing amount (Euro)
22500000
Customer
ACBA Bank Open Joint Stock Company
Type of customer
Financial institution
Country of headquarters
Armenia
Project number
PAM1018
Environmental and social ranking
IF-B
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Proparco has renewed the support it initiated in 2020 to ACBA, the largest bank in Armenia, to finance agriculture, especially in rural areas.

Client presentation

Founded originally as a rural cooperative bank to empower Armenian farmers, ACBA has grown into a universal banking institution with a widespread presence and a strong record in agricultural finance, while maintaining its cooperative model and DNA. With more than 1,700 employees, ACBA’s extensive branch network and financial services have made it the country's top agricultural lender.

Project description

ACBA’s positioning aligns closely with Proparco’s commitment to strengthening key economic players in fragile environments. Proparco has been working with ACBA since 2020 through a dedicated credit line, which included a governance action plan to elevate the bank’s corporate governance standards. This equity injection is a continuation of Proparco’s support since 2020, and aims at solidifying ACBA’s resilience as it plays a pivotal role in Armenia’s real economy.

Project impact

The expected impacts of this financing are as follows:

  • Support for more than 30,350 jobs within the companies financed by the bank (indirect jobs) over the next 5 years
  • Support for 1,030 MSMEs

The project will contribute to the achievement of SDG 8 (Decent work and economic growth).