ArmInfo. $200 million to fund climate projects, MSMEs, and women-owned MSMEs
Expected to create thousands of jobs and reduce nearly 40,000 tons of CO2 emissions—equivalent to removing over 9,000 gasoline cars from the road for a year
IFC is investing up to $200 million in Ameriabank to address financing gaps for climate finance projects, micro, small, and medium enterprises (MSMEs), and women-owned MSMEs in Armenia. The investment will support the country’s green transition and enhance climate resilience, aligning with national and global climate goals.
Half of IFC’s loan will be allocated to climate finance projects, a quarter to MSMEs, and another quarter to women-led MSMEs. IFC’s investment is expected to create thousands of jobs over four years and reduce annual greenhouse gas emissions by nearly 40,000 tons of CO2 equivalent—comparable to taking over 9,000 gasoline-powered cars off the road each year.
Artak Hanesyan, CEO at Ameriabank, said: “This long-term loan agreement stands out as the largest of its kind ever signed between IFC and a financial institution in Armenia. Beyond its scale, the agreement is significant for its purpose: supporting business initiatives and services that address climate change challenges, empower women entrepreneurs, and contribute to a sustainable future for Armenia.”
He added: “We deeply appreciate IFC’s decade-long partnership and our shared commitment to creating opportunities for businesses and people in Armenia.”
Armenia requires $2.4 billion in private investment by 2035 to transition to a low-carbon economy. While the demand for climate finance continues to grow, green finance products are still in the early stages of development in Armenia. Moreover, access to finance remains a major obstacle for businesses in Armenia, particularly MSMEs, which account for the majority of jobs in the country but face a $1.1 billion financing gap due to challenges such as limited collateral and weak financial management. Women-owned MSMEs encounter even greater barriers, often lacking access to collateral, formal bank accounts, or loans.
“This partnership is part of IFC’s strategy to boost private investment in sustainable development,” said Marcelo Castellanos, IFC’s Senior Regional Manager for the Financial Institutions Group in Europe. “Ameriabank, a leader in climate financing, is a strategic partner in advancing these goals. By providing long-term funding, we aim to demonstrate the viability of climate finance products and inspire replication and scale across Armenia’s financial sector.”
The project builds on the development of Green Taxonomy supported by the World Bank and promotes IFC’s broader objectives of fostering Armenia’s MSME and climate finance markets.
In Armenia, IFC aims to help close infrastructure gaps and reduce carbon footprints through investments in renewables and climate adaptation. Additionally, IFC boosts access to finance for MSME and supports a greener economy in partnership with financial institutions. IFC also plans to support the development of capital markets, public-private partnerships, and improved connectivity, focusing on transport and information and communication technology.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About Ameriabank
Ameriabank is a leading financial institution in Armenia, a major contributor to the Armenian economy with assets exceeding AMD 1 trillion. In line with its Digital Transformation Strategy, the Bank continually introduces and enhances products, services and platforms designed to meet the financial and non-financial needs of its customers. The Bank has adopted a customer-focused approach to ensure service quality and modern banking experience in an evolving digital environment. Ameriabank is committed to doing business responsibly and advancing Armenia’s transition towards a sustainable future. For more information, visit: www.ameriabank.am