On 30 June 2010, ARMECONOMBANK OJSC signed the second syndicated loan agreement for total amount of USD 10m with the European Bank of Reconstruction and Development (EBRD).
Hayk Mkrtchyan, Deputy CEO, signed the agreement on behalf of ARMECONOMBANK OJSC and Alexander Babayan, Principal Banker, signed on behalf of EBRD.
As announced at the Annual Meeting of ARMECONOMBANK OJSC held on 25 June 2010, today the second syndicated loan agreement was signed between ARMECONOMBANK OJSC and EBRD for on-lending to small and medium sized businesses. This is the first syndicated loan in the Caucasus region given the present financial crisis. Four internationally recognized financial institutions such as EBRD, UniCredit Bank Austria AG, FBN Bank (UK) Limited and Blue Orchard Finance of Switzerland have been involved in this syndicated facility.
This project is a vivid evidence of the deep confidence of the mentioned parties in ARMECONOMBANK OJSC.
It should be noted that the funds offerred by the participating financial institutions exceeded the USD 8m minimum announced by EBRD and amounted to USD 10m.
The syndicated loan consists of two separate facilities. EBRD will provide USD 4 m loan with a tenor of 36 months, and the rest of the amount, USD 6m, will be provided by participants, namely, Unicredit Bank Austria AG, FBN Bank (UK) Limited and Blue Orchard Finance for the tenor of 12 months with a possibility of extending this tenor for another 12 months.
Loan amount will be used to finance companies engaged in different sectors of economy. The maximum amount to be offered to a single borrower is USD 500,000 or its equivalent in Armenian drams.
This transaction provides with another evidence that ARMECONOMBANK OJSC remains faithful to its policy of further facilitation and development of small and medium businesses in the Republic of Armenia.
ARMECONOMBANK OJSC will continue its steady progress with implementation and development of new loan products, and finding new markets for attraction of facilities.
The cooperation between ARMECONOMBANK OJSC and EBRD dates back to 2000. By now, EBRD and ARMECONOMBANK OJSC have jointly carried out projects in the total amount of nearly USD 34m.
Source: The Armenian News by A1+
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