IFC Invests $200M in Ameriabank to Support Armenia’s Climate Goals and Empower Women-Led MSMEs

By fostering this transformative partnership, IFC and Ameriabank aim to set a benchmark for sustainable finance in Armenia.

The International Finance Corporation (IFC), a member of the World Bank Group, has announced a groundbreaking $200 million investment in Ameriabank, the largest financial institution in Armenia. This investment aims to bridge critical financing gaps in climate-focused projects, micro, small, and medium enterprises (MSMEs), and women-led MSMEs, driving Armenia’s green economic transition and advancing its sustainability agenda.

Catalyzing Climate Finance and Inclusive Growth

The allocation of IFC’s loan is strategic:

• 50% will finance climate-friendly projects to support Armenia’s low-carbon transition.
• 25% is dedicated to general MSMEs, addressing a $1.1 billion financing gap for small businesses.
• 25% will focus on empowering women-owned MSMEs, which face unique barriers to accessing capital and financial services.

The investment is expected to create thousands of jobs over four years and cut greenhouse gas emissions by nearly 40,000 tons of CO2 annually—equivalent to removing over 9,000 gasoline-powered cars from the roads each year.

A Milestone Partnership

“This long-term loan agreement is the largest of its kind between IFC and a financial institution in Armenia,” said Artak Hanesyan, CEO of Ameriabank. “Beyond its size, the agreement reflects a shared vision of fostering business initiatives that address climate change challenges, empower women entrepreneurs, and pave the way for a sustainable future in Armenia. We deeply value our decade-long partnership with IFC and their commitment to Armenia’s development.”

Addressing Key Challenges

Armenia’s transition to a low-carbon economy by 2035 requires $2.4 billion in private investment. However, climate finance products remain underdeveloped, and MSMEs, which account for most jobs in the country, struggle to secure financing due to issues like insufficient collateral and financial management. Women-led MSMEs face even greater hurdles, including limited access to formal banking systems, loans, and collateral.

Expanding the Green Finance Ecosystem

“This partnership with Ameriabank is part of IFC’s strategy to boost private investment in sustainable development,” said Marcelo Castellanos, IFC’s Senior Regional Manager for the Financial Institutions Group in Europe. “Ameriabank is a proven leader in climate finance, and we believe this partnership will demonstrate the viability of climate finance products and inspire replication across Armenia’s financial sector.”

IFC’s investment also supports Armenia’s Green Taxonomy initiative, which provides a framework for defining and identifying sustainable economic activities, and aligns with IFC’s broader objectives of promoting renewable energy, climate adaptation, and economic inclusion in the region.

Driving Broader Development Goals

In addition to climate finance, IFC is committed to:

• Closing infrastructure gaps, particularly in transport and ICT.
• Supporting the development of capital markets and public-private partnerships.
• Reducing carbon footprints through renewable energy investments and climate adaptation initiatives.
• Enhancing access to finance for MSMEs to drive equitable economic growth.

A Vision for Sustainable Development

By fostering this transformative partnership, IFC and Ameriabank aim to set a benchmark for sustainable finance in Armenia. This collaboration not only bridges existing gaps in green and inclusive financing but also aligns with the nation’s ambitious climate goals, contributing to a resilient and sustainable economic future for Armenia.