ACBA-Credit Agricole Bank for the first time signed $15 mln direct loan agreement with FMO aimed at financing SMEs and agricultural sector

ArmInfo. ACBA-Credit Agricole Bank and the Dutch Development Bank (FMO) have signed $ 15 mln loan agreement for SME and agricultural sector financing. The press-service of the ACBA-Credit Agricole Bank has told ArmInfo that the loan funds are multi-currency, which envisages attracting funds both in dollars and drams. The document was signed in Noordwijk  (Netherlands) during the Future of Finance conference organized by the FMO.

According to the source, by this agreement ACBA-Credit Agricole Bank has for the first time established direct cooperation with FMO. Prior to that since 2012 ACBA-Credit Agricole Bank and FMO have been collaborating within the agreement with Eurobank on crediting in local currency, where the FMO was the second creditor.

To note, FMO has invested in the private sector in developing countries and emerging markets for more than 46 years.  With an investment portfolio of EUR 9.2 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally.

According to the Financial Ranking of Armenian Banks prepared by ArmInfo as of July 1, 2016 the bank is in TOP-10 by the amount of lending to SMEs-33.8 bln AMD or 18% of the total loan portfolio of the bank. In the banks' total lending to SME the ACBA Credit Agricole Bank's share is 6%. The bank's agricultural loans portfolio reached 87.1 bln drams ($182.8 mln) as of July 1 2016. ACBA Credit Agricole bank traditionally holds the major share in total agricultural loans of the banking system-55% as July 1 2016. As this bank is specialized on agricultural lending the share of agricultural loans in its credit portfolio reaches 41%. To recall, "ACBA-Credit Agricole Bank" CJSC has been operating in Armenia since 1995. Since September 2006, the majority shareholders of the Bank have been Credit Agricole S.A. (15.56%) and SJSC "Sacam International" (part of Credit Agricole S.A - 12.44%). Along with them, 10 agricultural cooperative unions hold shares in the capital of ACBA- Credit Agricole Bank. By the coverage of the branch network and the number of regional branches, the Bank holds the second position.  According to the key balance sheet figures, ACBA-Credit Agricole Bank is in the TOP-5.