GCPF PROVIDES LONG-TERM SUBORDINATED DEBT TO PARTNER AMERIABANK
The Global Climate Partnership Fund has entered into a financing agreement agreement with long-standing partner institution Ameriabank, granting Armenia’s leading bank a total of USD 10 m in long-term subordinated debt.
GCPF and Ameriabank have been working together since 2017, when the partners agreed on a USD 10 m loan designed to finance energy efficiency and renewable energy projects.
Since 2017, Ameria has used GCPF climate funding to finance projects that will avoid 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.
In order to further enhance Ameriabank’s long-term approach to these sectors, the existing loan has now been replaced by USD 10 m Tier 2-qualifying subordinated debt. Given the introduction of the international regulatory framework for banks Basel-III by the central bank of Armenia, Ameriabank plans to leverage the sub-debt with senior capital to further expand its financing activities.
“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 GCPF, Luke Franson, Head Energy Debt – Financial Institutions at GCPF investment manager responsAbility, underlined: “We are pleased to further expand our existing cooperating with Ameriabank and to accompany this partner institution in its successful efforts to continuously broaden the scope of climate financing in Armenia.”
+374 10 561111
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.