Thursday, October 19 2017 19:02
Karine Melikyan

IFC to Help Armenia’s Inecobank Reduce Interest Rate Risk, Supporting Access to Finance

IFC to Help Armenia’s Inecobank Reduce Interest Rate Risk, Supporting Access to Finance

ArmInfo. IFC, a member of the World Bank Group, is helping Armenia’s Inecobank engage in interest rate swap transactions, which will help it better manage its interest rate risk to support access to finance for local businesses.

IFC and Inecobank have signed an International Swaps and Derivatives Association (ISDA) Master Agreement, which allows the bank to hedge the U.S.-dollar interest-rate risk on its outstanding long-term borrowings. The ISDA Master Agreement is the standard document used to govern over-the-counter derivative transactions.

“This new agreement with IFC will help us better match our asset and liability positions and increase our ability to manage our finances effectively,” said Garnik Tadevosyan, Acting Chief Executive Officer of Inecobank. “We will use this new risk management tool to fix interest rates on our long-term borrowings at favorable levels to create better value propositions for our clients.”

According to the World Economic Forum’s Global Competitiveness Index 2016-2017, access to finance represents the biggest obstacle to doing business in Armenia. As well as helping Inecobank hedge its interest rate risk, the new tool will improve access to long-term finance for its clients, helping them grow and create jobs.

“The agreement with Inecobank, our long-time partner, is part of our strategy to help banks improve their risk management capacity and introduce innovative products that can benefit their clients,” said Jan van Bilsen, IFC Regional Manager for the South Caucasus.

Armenia became an IFC member in 1995. Since then, IFC has provided over $480 million, including nearly $118 million mobilized from other lenders, to finance 49 projects across a range of sectors, including financial markets, manufacturing, agribusiness, services, and mining. IFC has also supported trade transactions worth more than $130 million through its trade finance program, and implemented advisory projects focused on private sector development.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in developing countries around the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org

About Inecobank

Established in 1996, Inecobank CJSC is a dynamically developing Bank offering universal services in the financial services market in Armenia. Goal is to become the premier provider of simple and efficient banking services to retail, micro and SME Clients in the developing countries. Inecobank works with almost 30 IFI partners, including 3 equity investors (IFC, DEG, and EBRD), as well as senior lenders such as ADB, FMO, BSTDB, EFSE, OeEB, OFID, and many others. For more information, visit www.inecobank.am.

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Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

Volume of satisfied bids

200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000