Evocabank will raise $10 million from OFID
The funding will be directed to support local businesses and promote climate action in Armenia.
The OPEC Fund for International Development has signed a US$10 million loan agreement with Evocabank to support micro, small, and medium-sized enterprises (MSMEs) in Armenia. Lending will focus on women-led businesses as well as energy efficiency and renewable energy projects promoting climate action.
OPEC Fund President Abdulhamid Alkhalifa said: “Partnering with Evocabank allows us to address two critical development priorities: increasing financial access for MSMEs, especially those that are underserved; and supporting Armenia’s efforts to tackle climate change. This partnership reflects our broader commitment to promoting sustainable economic development and inclusive growth in Armenia.”
The OPEC Fund loan will provide financing to local companies, which represent nearly all businesses in Armenia and provide around 70 percent of all jobs. Despite their critical role in the economy, many MSMEs, especially women-lead businesses, often face credit constraints, with nearly three-quarters either partially or fully unable to access necessary financing.
Karen Yeghiazaryan, Chairman of Management Board of Evocabank said: “We are excited to announce our partnership with the OPEC Fund for International Development. With a USD 10 million facility at our disposal, Evocabank is poised to make a meaningful impact on the growth of micro, small, and medium enterprises (MSMEs) in Armenia. This funding provides a valuable opportunity to further our mission of promoting business development and driving economic progress in the region. We look forward to offering tailored and accessible financing solutions that will empower MSMEs to overcome challenges, foster innovation, and scale their operations to new heights.”
The OPEC Fund has been supporting Armenia since 2004 and to date has committed around US$300 million in public and private sector financing, supporting financial institutions, SMEs and the agriculture and energy sectors.
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed about US$27 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.
Founded in 1990 Evocabank is the first registered commercial bank in Armenia with over 34 years of experience in the banking market. The bank is headquartered in Yerevan, Armenia and has 13 branches in Yerevan and regions. Evocabank provides inclusive financial services to individuals, MSMEs, and larger businesses. The bank is aimed at delivering financial services with extensive application of the latest technologies in a fast, simple and convenient way, operating in a mobile- first format. Focused on innovative digital approach Evocabank is one of the fastest growing banks in Armenia. The bank has received a number of international awards including “The Best SME Bank of Armenia” and “The Best Digital Bank of Armenia” awards by Global Finance Magazine.