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| Ameriabank RE |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 28757 |
| Company name | Ameriabank CJSC |
| Country | Armenia |
| Sector | Finance & Insurance |
| Environmental category | FI |
| Department | Global Financial Markets Group |
| Status | Pending Approval |
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| Date SPI disclosed | August 26, 2009 |
| Projected board date | September 30, 2009 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The project is a senior loan of up to $15 million to Ameriabank (the “Bank”) to finance small hydro power plants in Armenia. As long-term funding is barely available in Armenia, a senior loan with a tenor of up to 8 years would enable the Bank to provide much needed long-term loans and facilitate the construction of such small-scale renewable energy projects. |
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| Project sponsor and major shareholders of project company |
| The project sponsor is Ameriabank and was established in 1910 as a branch of Caucasus Trade Bank and was the first bank in Armenia. As of June 30, 2009, Ameriabank was the fifth largest bank in Armenia by total assets, fourth in terms of total capital, and first in terms of statutory capital. About 99% of the Bank’s share capital is owned by TDA Holdings Ltd. which is ultimately controlled by Ruben Vardanian, the chairman of the Russian investment bank Troika Dialog. |
| Total project cost and amount and nature of IFC's investment |
| The proposed investment is a $15 million A loan for IFC’s account. |
| Location of project and description of site |
| The Bank is headquartered in Yerevan. Currently, the Bank has four branches across Armenia and plans to establish two and four more in 2009 and 2010 respectively. Investments can be made throughout the country. |
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| Anticipated development impact of the project |
| The project would support the construction of up to 20MW of small hydro power capacity, which will result in lower greenhouse gas emissions and reduced fuel imports for electricity production |
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| IFC's expected development contribution |
| The project will increase Armenia’s installed renewable energy capacity resulting in lower GHG emissions. The increased domestic electricity production will decrease its reliance on fuel imports (natural gas and uranium) and add additional reliable renewable energy capacity. |
| Environmental and social issues - Category FI |
| This project has been classified as Category FI and entails IFC support to Ameriabank for a credit line to finance small hydro power plants. The key issues to address during appraisal of this project will be to ascertain that this new IFC client understands IFC's social and environmental requirements, establishes a Social and Environmental Management System (SEMS), and demonstrates that the social and environmental due diligence procedures are adequate to ensure that supported projects comply with the social and environmental laws and regulations of Armenia and IFC's Performance Standards. Ameriabank will also be required to demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions. |
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| For inquiries about the project, contact: |
Armen A. Aslanyan
Head, Corporate Finance
9, Grigor Lusavorich Str. Yerevan, 0015,
Armenia
tel.: +374 10 513177, ext. 1421;
fax: +374 10 565958
e-mail: a.aslanyan@ameriabank.am
www.ameriabank.am |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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