YEREVAN, ARMENIA -- The Asian Development Bank (ADB) has signed a financing package of up to $19 million with Armeconombank Open Joint Stock Company (AEB) to expand access to finance for micro, small, and medium-sized enterprises (MSMEs) and households in Armenia. The package prioritizes women-led businesses and green investments.

The financing comprises a loan equivalent to $15 million in Armenian dram from ADB's ordinary capital resources and a $4 million concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA).

"This project is a milestone for Armenia's financial sector and marks ADB's first private sector transaction in local currency in the country," said ADB Deputy Country Director for Armenia Luke Fochtman. "By increasing access to local currency financing and supporting sustainable investments, we are helping MSMEs-especially women-led enterprises-invest, grow, and contribute to a more inclusive and resilient economy."

While MSMEs are central to Armenia's economy and employment, they face high barriers to credit. Demand for sustainable energy technologies is growing but remains constrained by high upfront cost and long payback periods. The blended finance structure enables AEB to offer longer-tenor, affordable loans for clean technologies, including small-scale renewable energy and energy efficiency upgrades for both MSMEs and households.

AEB will also receive support from ADB's Advancing Green Finance for Sustainable Development Technical Assistance to enhance its sustainable finance practices, gender-responsive measures, and energy-efficiency lending frameworks.

Established in 2024, CANPA is a trust fund managed by ADB and supported by a commitment of Can$360 million from the Government of Canada. The fund builds on the success of the two previous funds, namely the Canadian Climate Fund for the Private Sector in Asia II (CFPS II) and its predecessor CFPS. CANPA aims to support private-sector projects in Asia and the Pacific that focus on climate and nature-based solutions, while also promoting gender equality. This project marks ADB's first financing commitment in Armenia under the three Canadian climate funds.

Established in 1991, AEB is one of Armenia's longest-standing banks with a network of 54 branches. Armenia joined ADB in 2005, and the bank has since committed more than $2 billion in loans, grants, and technical assistance to the country.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members-50 from the region.