The International Finance Corporation (IFC), a member of the World Bank Group, is loaning USD 3 million to Agricultural Cooperative Bank of Armenia (ACBA) Leasing, which was originally established by IFC. ACBA Leasing is a subsidiary of ACBA Credit Agricole Bank, which has a gross loan portfolio of USD 253 million [1]. The purpose of the loan is to fund the leasing of transportation vehicles as well as manufacturing and agricultural equipment. It will target small and medium-sized Armenian businesses.
In 2003, IFC invested USD 1 million of equity and provided a USD 2 million long-term loan to the company [3]. According to ACBA Leasing’s General Manager Stepan Gishyan, this most recent loan from IFC will allow the company to “continue our policy of financing local businesses to obtain new equipment under leasing, thus helping the Armenian economy recover after the global financial crisis” [2].
By Julia Korn, Research Associate
About The International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, its new investments totaled USD 14.5 billion.
About Agricultural Cooperative Bank of Armenia (ACBA) Leasing:
Agricultural Cooperative Bank of Armenia (ACBA) Leasing provides loans to Armenian entrepreneurs and companies with concentrations in agriculture, trade, production and service. It also provides banking services to individuals. ACBA Leasing is a subsidiary of ACBA Credit Agricole Bank. Established in 1995, ACBA Credit Agricole Bank had a gross loan portfolio of USD 253 million, 105,000 active borrowers, average loan per borrower of USD 2,408, total deposits of USD 94.6 million, total assets of USD 402.6 million and 185,428 depositors as of 2008. Financial data specific to ACBA Leasing is not available. The leasing company was launched in 2003 by Credit Agricole Group, International Finance Corporation (IFC) and Lebanese Leasing Company in order to offer lease services to its customer network. About 65 percent of ACBA Credit Agricole Bank’s operations consist of microfinance.
Sources and Additional Resources:
[1] The Mix Market. ACBA Credit Agricole Bank. http://www.mixmarket.org/mfi/acba
[2] International Finance Corporation. “IFC Supports Development of Small and Medium Enterprises in Armenia” on June 7, 2010. http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/BB55B339A27A4A268…
[3] International Finance Corporation. “Summary of Project Information.” 2003. http://www.ifc.org/ifcext/spiwebsite1.nsf/1ca07340e47a35cd85256efb00700c…
MicroCapital Universe: International Finance Corporation. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Int…
MicroCapital Universe: Agricultural Cooperative Bank of Armenia Leasing. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Agr…
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