Long-term subordinated debt for Ameriabank

Zurich, 21 February 2019 —Several responsAbility-managed funds focusing on micro- and SME finance and climate change mitigation in emerging markets, respectively, have entered into a financing agreement with Ameriabank, granting Armenia’s leading bank a total of USD 19.2 m in long-term subordinated debt. The loan is designed to enable the further expansion of the bank’s activities, particularly in financing Armenian businesses and energy projects.

responsAbility and Ameriabank have been working together since 2016 with responsAbility-managed micro- and SME finance funds predominantly providing debt-financing for local SMEs and climate change mitigation projects as well as some subordinated debt. 

In addition to this cooperation, the responsAbility-managed climate fund and Ameriabank agreed on a USD 10 m loan designed to finance energy efficiency and renewable energy projects in 2017. 

In order to further enhance Ameriabank’s long-term approach to these sectors, existing loans have been replaced by USD 19.2m Tier 2-qualifying subordinated debt. Given the introduction of the international regulatory framework for banks Basel-III by the central bank of Armenia, Ameriabankplans to leverage the sub-debt with senior capital to further expand its financing activities inbusinesses and green energy projects. 

Since 2017, Ameria has used responsAbility-managed climate funding to finance projects that willavoid more than 1,700 tonnes of CO2 emissions per year, which is equivalent to the energy consumption of around 1,100 Armenian homes in one year. Financed projects range from new transport solutions for logistics companies to energy-efficient heavy machinery for the mining industry. In the near future, Ameriabank plans to also finance renewable energy projects.

“These facilities will have significant development impact through long-term funding and further loan portfolio growth,” noted Artak Hanesyan, CEO of Ameriabank. “We highly value this new level of partnership with our long-standing partners. The use of funds will better serve the interests of our clients in various industries and facilitate further development of the Armenian economy.”

Speaking on behalf of responsAbility, CEO Rochus Mommartz underlined: “Financial institutions with inclusive business models play a key role in driving development. We are pleased to partner with Ameriabank, a successful and dynamically evolving institution which actively contributes to funding and greening the Armenian economy.”

About Ameriabank (www.ameriabank.am) Ameriabank CJSC is the leading bank in Armenia as measured by assets, liabilities, loans portfolio, net profit and equity. The first investment bank in Armenia, Ameriabank has been providing a comprehensive package of innovative banking services since 2007. Today, Ameriabank is a universal bank offering corporate, investment and retail banking services.

About responsAbility Investments AG (www.responsability.com) A leading asset manager for impact investments in emerging economies, responsAbility manages USD 3 bn of assets through a variety of investment vehicles that provide private debt and private equity to some 540 companies with inclusive business models across 90 countries. Founded in 2003, the company is headquartered in Zurich, Switzerland, and has local offices in Bangkok, Geneva, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris. 

Contacts Ameriabank Elmira Adamyan e.adamyan@ameriagroup.am +374 10 561111