EBRD and Acba bank enhance private sector support in Armenia
The European Bank for Reconstruction and Development (EBRD) has signed a €50 million unfunded portfolio risk-sharing agreement with Acba bank to facilitate Armenian firms’ access to finance. Under the arrangement, the EBRD will cover up to 50 percent of Acba bank’s credit risk on newly issued sub-loans.
Those loans will support the working capital needs of domestic businesses, helping them to expand and improve their operations. Eligible sub-borrowers will also receive European Union (EU)-funded technical assistance under the EBRD’s Advice for Small Businesses programme.
The agreement was signed in London by Francis Malige, the EBRD’s Managing Director for Financial Institutions, and Hakob Andreasyan, Acba bank’s Chief Executive Officer.
Portfolio risk sharing is one of the EBRD’s core financing frameworks, dedicated to supporting and developing local private companies. The EBRD offers partner banks funded or unfunded risk participation mechanisms in foreign or local currency by co-financing and guaranteeing the partner bank’s loans to eligible companies.
This is the second transaction with Acba Bank under the EBRD’s portfolio risk-sharing framework, building on a successful initial facility.
EBRD will share part of the credit risk on Acba bank’s new loans, enabling the bank to optimise capital use and significantly expand lending to Armenian businesses. Under the arrangement, Acba bank is expected to mobilise up to twice the value of the facility in financing for the private sector, amplifying its impact on economic growth.
The project will benefit from a €4.5 million guarantee provided by the EU under its European Fund for Sustainable Development Plus (EFSD+) to support the local small and medium-sized enterprise sector – a financial tool that mitigates the financial risks associated with lending to small businesses in order to promote economic growth in the country.
The EFSD+ Financial Inclusion in the Neighbourhood programme is designed to empower micro, small and medium-sized enterprises by fostering competitiveness and growth. Through its strong financial tools and expertise, the programme aims to encourage intermediaries to direct new lending towards those businesses that need it most.
Acba bank, a longstanding EBRD partner, is one of the leading providers of corporate and investment banking services in Armenia, especially in the agricultural sector. The bank continuously expands and enhances the scope and quality of its financial services, contributing to Armenia’s economic stability and development. Acba bank is the founder and 100 per cent shareholder of Acba Leasing, the first leasing company in Armenia and, together with Amundi, Europe’s leading asset manager, has established Amundi-Acba Asset Management in Armenia. Acba bank operates in all regions of Armenia, with 66 branches. It has more than 5,000 shareholders.
Francis Malige, EBRD Managing Director, Financial Institutions, said: “We are pleased to sign this new guarantee agreement with Acba bank, supported by our key partner, the European Union. We remain firmly committed to fostering the growth and sustainability of private businesses by improving access to finance for small and medium-sized enterprises – an essential driver of Armenia’s economic development. Through innovative financial instruments, we aim to reach businesses in underserved areas, empowering the private sector to support the country’s long-term development and economic resilience. Bolstering firms’ competitiveness and supporting financial-sector intermediation through risk-sharing products are two of the EBRD’s key priorities in Armenia.”
Hakob Andreasyan, Chief Executive Officer of Acba bank, said: “Acba bank and the EBRD have an extensive history of cooperation, and we continue to grow this partnership based on mutual trust. The agreement signed in London opens up new horizons, particularly for small and medium-sized enterprises. I am pleased that Acba bank continues to advance financial solutions in Armenia that have a real and tangible impact on our economy.”
The EBRD is one of the largest institutional investors in Armenia, having invested almost €3 billion in the country through 243 projects to date, with the majority of that investment going to the private sector.
Most Read
Other News
EBRD launches inaugural €1 billion securitisation transaction
07.05.2026.19:59
EBRD mobilises global investors, supports development of new MDB asset class
The first SRT covers risks related to €1 billion of private-sector loans in its regions
Prepares ground for scaling private-sector lending through programmatic risk sharing
The European Bank for Reconstruction and Development (EBRD) has successfully launched its inaugural significant risk transfer (SRT), marking a major milestone in the Bank’s efforts to mobilise private capital and scale up lending in emerging markets.
The €1 billion transaction, structured as a synthetic securitisation and branded by the EBRD as “Mosaic”, transfers credit risk on a diversified reference portfolio of EBRD assets while keeping the underlying loans on the Bank’s balance sheet.
By sharing risk with private investors and insurers, the transaction mobilises private capital into countries and projects that private capital may not otherwise have been able to access. It also enhances the EBRD’s capital efficiency and releases capacity to support additional high impact projects.
The securitisation spans over half of the economies where the EBRD invests, as well as multiple sectors including sustainable infrastructure, corporates and financial institutions, providing access to a diversified and representative section of the Bank’s private-sector portfolio.
Mosaic comprises a €835 million senior tranche, retained by the EBRD, a €145 million mezzanine tranche, partly placed with international investor PGGM and partly insured by AXA XL, AXIS Capital and Liberty Mutual. A €20 million junior tranche is to be retained by the EBRD.
Santander CIB and Clifford Chance advised the EBRD on the structuring, placement and execution of the transaction.
As the EBRD’s first portfolio-level risk transfer, the transaction represents an important step in expanding the Bank’s ability to finance long-term investments and development objectives, while unlocking capital from a new group of global risk-sharing partners.
Burkhard Kübel-Sorger, the EBRD’s Vice President and Chief Financial Officer, said: “Through this transaction, we are creating a new opportunity for institutional investors to engage with EBRD portfolios and support investments in our regions. By sharing risk and mobilising private capital, we can use our balance sheet more effectively, accelerating the circulation of capital and channelling more long-term investments to emerging economies. The EBRD’s inaugural SRT represents a major step forward for the MDB [multilateral development bank] community, for the Bank, and for the regions we serve.”
Lars Dijkstra, Chief Investment Officer, Asset Management at PGGM, said: “We are proud to be the first anchor investor in the EBRD’s risk-sharing programme; establishing a relationship with a leading and likeminded multilateral development bank where sustainability objectives are embedded in all financing activities. The EBRD’s approach closely aligns with our joint investment philosophy with our client, PFZW, in which we balance return, risk and sustainability as integral parts of our ‘3D’ investment strategy.”
Mosaic aligns closely with the G20 recommendations of the Independent Review of Multilateral Development Banks’ Capital Adequacy Frameworks, mobilising private capital, optimising balance sheets through private-sector risk transfer and leveraging data, such as the Global Emerging Markets (GEMs) database, to demonstrate MDB asset performance to investors.
The EBRD is among the strongest mobilisers of private capital in the regions where it operates. In 2025 the Bank delivered €16.6 billion of own-account financing and mobilised a further €26.8 billion.
EBRD and EU strengthen access to finance for women and young entrepreneurs in North Macedonia
04.05.2026.17:28
Twelve Georgian wine producers showcase their creations at Miami International Exhibition
30.04.2026.17:25
