GGF and ARARATBANK boost energy efficiency financing with USD 5 million loan facility

  • Loan boosts Araratbank's capacity for sustainable long-term EE project financing
  • Resulting EE subloans will produce primary energy savings of at least 20% with projected reduction of energy consumption by over 19,580 MWh and CO2 emissions by over 4,392 tons per annum, equivalent to planting 440 hectares of new forest

Luxembourg and Yerevan, 16 November 2012 - The Green for Growth Fund, Southeast Europe (GGF, the Fund) and Araratbank OJSC (Araratbank, the Bank) today signed a USD 5 million loan agreement to strengthen the Bank's lending capacity for energy efficiency (EE) projects at the retail and micro, small and medium enterprise (MSME) level. The loan will bolster Araratbank's strategy to position itself as a key player in the green energy finance in Armenia.

The loan facility is dedicated to provide financing to private households and business customers for financing energy efficiency solutions. On the retail side, these include installation of energy efficient windows and doors, thermal wall insulation and replacement of lighting and heating systems among others. For business clients, Araratbank will be able to offer attractive EE loans for upgrading and/or acquiring of EE systems and equipment, replacement of heating and air conditioning systems, of ventilating and refrigerating systems and other energy saving measures.

Araratbank's portfolio of EE subloans funded by the GGF's USD 5 million loan is projected to achieve a minimum of 20% in primary energy savings. This will ultimately translate into annual energy savings exceeding 19,580 MWh and CO2 reductions of over 4,392 tons per year. To illustrate the green benefits: it would take about 440 hectares of additional forest to absorb 4,392 tons of CO2 generated in one year.*

The loan comes with comprehensive support by the GGF Technical Assistance Facility, which will work together with Araratbank in developing and implementing an EE lending strategy, and designing dedicated products. On the demand side, the Fund's technical assistance arm will help maximize impact through proactive marketing and awareness-raising campaigns. Extensive staff training programs will also be part of the capacity building support provided by the GGF Technical Assistance Facility.

Araratbank offers a full range of banking products and services to micro, small and medium-sized enterprises, corporations and retail customers. With a market share of 5 percent as at September 2012, Araratbank ranks 9th in the Armenian banking sector by assets. The Bank is strongly committed to develop EE lending activities in the future.

"The GGF is delighted to announce this cooperation with Araratbank, a solid financial institution dedicated to green finance. The GGF loan boosts its ability to provide a broad customer base with sustainable long term financing for EE projects. Araratbank's strong regional presence also enables us to maximize the Fund's outreach while making strides in lowering Armenia's energy consumption," said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe.

Ashot Osipyan, Chief Executive Officer of ARARATBANK OJSC, emphasizing that the energy efficiency sector is the strategic sector of the Armenian economy, strongly believes that this constructive cooperation will greatly contribute to the development of the energy efficiency and renewable energy sector. "Within the framework of cooperation with GGF the bank will get a technical assistance, which will enable us to act on the Armenian market with new lending technologies and tools", said Ashot Osipyan.

* Source:


Initiated in December 2009 by the KfW Entwicklungsbank (The German Development Bank) and the European Investment Bank (EIB) with the financial support of the European Commission and the European Bank for Reconstruction and Development (EBRD), the Green for Growth Fund, Southeast Europe (GGF) is dedicated to enhancing energy efficiency and fostering renewable energies in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo*, Montenegro, Serbia and Turkey as well as in the nearby European Eastern Neighborhood region comprised of Armenia, Azerbaijan, Georgia, Moldova and Ukraine. The GGF provides refinancing to financial institutions for on-lending to enterprises and private households for energy efficiency projects. The GGF also invests directly in specialist energy service companies (ESCOs) as well as energy service and supply companies, and renewable energy projects. The activities of the GGF are supported by a Technical Assistance Facility. The GGF is a public-private partnership with an investor base of donor agencies, international financial institutions and institutional private investors. The GGF is registered under Luxembourg law as a SICAV (variable capital investment company). The GGF is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg, in concert with the fund advisor, Finance in Motion GmbH, Frankfurt/Main, Germany, and a technical advisor, MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany.For additional information please visit

* This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo Declaration of independence


It is due of mention that in the 3rd quarter as compared to the beginning of the year the Bank's assets have increased by 13% and stood at AMD 98.9 billion. The loan portfolio increased by 10.3%, totaling AMD 48.7 billion and term deposits by 25.4%, totaling AMD 17.3 billion. In the reporting period the number of customers of ARARATBANK OJSC increased by 13,5%, reaching 159948.
As of 30 September, 2012 the total capital of ARARATBANK stood at AMD 14.9 billion and liabilities at AMD 84.1 billion. According to the indicators of the reporting period net profit of the Bank stood at AMD 2.9 billion, ROE at 28% and ROA at 3.6%.
Ararat offers a full range of banking products and services to micro, small and medium-sized enterprises, corporations and retail customers. With a market share of 5 percent as at the third quarter of 2012, Araratbank ranks 9th in the Armenian banking sector by assets.


Green for Growth Fund, Southeast Europe
Christine Prütz
T: +49 (0) 69 9778 7650-22

19 Pushkin St., Yerevan 0010, RA
Tel.: +37410 547895
Fax: +37410 547894

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