Inecobank, an Armenian-based bank, raised the funds from global impact investment manager Blue Orchard’s Microfinance Fund. The agreement was for a subordinated debt facility with a seven-year maturity period, and was the first time Blue Orchard’s Microfinance Fund delivered such a facility in Armenia.
Inecobank will use the funds to fuel its general activities. The bank will also use the money to grow its credit portfolio. Here, Inecobank is particularly keen to focus on the SME sector.
The bank’s CEO, Tigran Davtyan, says the subordinated debt facility will place Inecobank “among the most capitalized banks in Armenia’s banking system”. He also noted that the subordinated loan gives the bank more flexibility regarding asset and liability management, increasing its capital management.
Davtyan also says that his bank excels at attracting foreign funding, and this “comes to testify [to] the high level of trust towards Inecobank, which has been achieved thanks to the bank’s excellent financial performance and the high standards of corporate governance practices at the bank”.