ArmInfo. The European Bank for Reconstruction and Development will provide a $4 million loan to HSBC Bank Armenia, the EBRD said in an official statement. It is noted that $3 million will be provided directly by the EBRD and $1 million by the Green Climate Fund (GCF) under the Regional Green Economy Financing Facility (GEFF).
"The loan funds will be used to finance investments in climate change mitigation and technology adaptation technologies by local commercial sub-borrowers in accordance with the standards and requirements of GEFF in Armenia. The entire loan amount will be linked to investments in the transition to a green economy. Clients will benefit from technical cooperation in the form of training, capacity building and project implementation support from specialized consultants under the abovementioned program", the EBRD said in a statement. It should be noted that since its activities in the Caucasus in 1992, the EBRD, has invested more than 10.64 billion euros in 652 projects in the financial, corporate, infrastructure and energy sectors of the region, and most of these investments were made in the private sector.
The EBRD, being the leading institutional investor in Armenia, operating in all sectors of the economy, has invested about 1.9 billion euros in the country's economy in 200 projects in the financial, corporate, infrastructure and energy sectors, and 91% of investments were made in the private sector. Until now, EBRD is a shareholder (17.73%) of only one Armenian bank, Ameriabank. Currently, EBRD is a shareholder of only one Armenian bank - Ameriabank (17.73%). Previously (several years ago) it participated in the capital of at least five Armenian banks, but after completing the mission, he took an exit strategy. Earlier (several years ago), it had its share in the capital of at least five Armenian banks, but after completing the mission, but after completing the mission, it took an exit strategy. Currently, the bank is implementing loan programs with ACBA Bank, ARARATBANK, Evocabank, INECOBANK, Ameriabank, IDBANK and Armswissbank. The EBRD is co-financing the Masrik-1 industrial solar power plant and Team Telecom Armenia, the largest telecommunications operator in Armenia, in the amount of $20 million. The EBRD also provides loans to a number of municipal programs, including the modernization of the Yerevan Metro. Another $35 million was allocated to modernize the electricity distribution infrastructure (Green Cities Program) in the cities of Yerevan and Gyumri. An important factor in Armenia is considered the participation of the EBRD together with the EU in the modernization of the Meghri checkpoint on the border with Iran, for which the bank allocated 10.6 million euros.
HSBC Bank Armenia CJSC has been operating in Armenia since September 1995. The Bank's activities are predominantly focused on corporate banking. According to the Financial Rating of Banks of Armenia as of December 31, 2021, prepared by ArmInfo, HSBC Bank Armenia ranked 10th in terms of total assets and 9th in terms of total loan portfolio, amounting to 4.4% and 5% of market shares, respectively. In terms of industry, most of HSBC Bank Armenia's loan investments are in trade (26%), industrial sector (24%), catering/services (11%). Moreover, investments in the SME sector exceeded 17% of the bank's loan portfolio, while remaining at the level of 3% in the total market volume. HSBC Bank Armenia managed to increase its net profit by 42% in 2021, to $6.7 million. The bank's assets, taking into account lending at the expense of London-based HSBC Bank PLC, increased to $657 million, and loan investments reached $433 million. The shareholders of HSBC Bank Armenia are HSBC Europe B.V. - 70% and Wings Establishment - 30%.