EBRD and Green Climate Fund (GCF) continue to contribute to the transition to green economy, by providing green finance through local financial institutions in Armenia. In October, US$ 4 million has been provided to HSBC Bank Armenia (HSBC) by EBRD (US$ 3 million) and GCF (US$ 1 million) for on-lending to the private sector.
The proceeds of the loan will be used for financing investments in climate change mitigation and adaptation technologies by local private sector commercial sub-borrowers in a gender-responsive way in line with the standards and reporting requirements for the GEFF in Armenia. 100 per cent of the loan proceeds will be related to Green Economy Transition investments. The client will benefit from Technical Cooperation (TC) in form of trainings, capacity building and support for project implementation from the dedicated programme consultants.
The project supports the Green Transition Impact quality through the provision of funding and know-how to financial intermediaries financing private sector investments in high performing climate change mitigation and adaptation technologies and solutions. This will facilitate Armenia’s transition to environmentally sustainable, low-carbon and climate-resilient economy.
HSBC Bank Armenia CJSC is a commercial bank in Armenia predominantly focused on corporate banking. HSBC ranked the 11th by total assets and the 9th by gross loan portfolio, accounting for 3.7 per cent and 3.9 per cent respective market shares as of YE 2021.
Since the launch of the first phase of GEFF in Armenia, HSBC is the fifth partner financial institution (PFI) to join the programme. List of all PFIs are at the following link.