IFC Invests $200 Million in Ameriabank to Boost Climate Finance and Support MSMEs in Armenia

The International Finance Corporation will invest up to $200 million in Ameriabank for filling financing gaps for climate finance projects, MSMEs, and women-owned MSMEs in Armenia. Investment will help nudge Armenia towards green transition while contributing to the national and global climate goals.

Focus on Climate and MSME Financing

Half will go to climate finance projects, while a quarter is dedicated to the MSME category, and a quarter to the women-led MSME category. This strategic loan allocation will be generating thousands of jobs over the next four years while significantly cutting annual greenhouse gas emissions—approximately 40,000 tons of CO2 equivalent—equivalent to taking off the road each year over 9,000 gasoline-powered cars.

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.”

Closing Financing Gaps in Armenia

Private investment will need to be approximately $2.4 billion by 2035 for the transition of the Armenian economy into a low-carbon one. While the demand for climate finance is rising, green finance products are still at a very nascent stage. The availability of finance is the major issue, as access to it remains challenging for businesses, with MSMEs, who have most of the country's jobs, suffering a $1.1 billion financing gap mainly because of a lack of adequate collateral and poor financial management. Women-led MSMEs face even greater obstacles, often lacking access to collateral, formal bank accounts, or loans.

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Supporting Sustainable Development

The project leverages the Green Taxonomy supported by the World Bank to strengthen Armenia’s MSME and climate finance markets. Additionally, IFC is working to close infrastructure gaps and reduce carbon footprints by investing in renewables and climate adaptation. The initiative supports greater access to finance for MSMEs and fosters a greener economy through partnerships with financial institutions. Future plans include bolstering capital markets, public-private partnerships, and improving connectivity, particularly in transport and information and communication technology sectors.