€ 3 million to support SME growth

AraratBank has raised EUR 3 million from two funds advised by impact investor Incofin Investment Management: EUR 1,5 million from Volksvermogen NV and EUR 1,5 million from Incofin CVSO providing micro entrepreneurs an access to small loans.  

“The collaboration with Incofin IM since 2012 witnesses the stable and efficient cooperation between the two institutions. It should be underlined that in the conditions of the crisis caused by the COVID-19 pandemic, AraratBank has been always keeping the small and medium enterprises in its spotlight, attaching great improtance to the sustainable development of enterprises in support of the country's economic growth, creation and retention of jobs. Back in December 2020, AraratBank borrowed USD 5 million from Incofin IM-advised Microfinance Enhancement Facility (MEF) to foster the SME sector in Armenia. This time the funds have been raised in euros. It is noteworthy that loans of around 4,000,000 euros of the Bank’s existing loan portfolio have already been disbursed from Incofin funds” noted Mher Ananyan, Chairman of the Executive Board of AraratBank.   

“Araratbank and Incofin work closely together since 2012. As an impact investor, we try to provide support to our clients not only in good times, but also when times are difficult. That is why we are pleased to involve two more Incofin funds in the recent transaction” commented Jan Dewijngaert, Regional Director EECA of Incofin Investment Management.