OPEC Fund mobilizes US$35 million for small businesses and climate-related investments in Armenia

The OPEC Fund for International Development (the OPEC Fund) is providing a US$35 million syndicated loan to Armeconombank to expand access to finance for micro, small and medium-sized enterprises (MSMEs) across Armenia. The financing comprises a US$20 million A-loan from the OPEC Fund’s own account and a US$15 million B-loan provided by the Allianz Credit Emerging Markets Fund, managed by Allianz Global Investors. In addition to supporting MSMEs, the OPEC Fund’s A-loan may also finance eligible climate-related projects.

OPEC Fund President Abdulhamid Alkhalifa said: “Armenia’s strong economic growth in recent years has increased demand for financing. By expanding access to capital for micro and small enterprises, this loan will support business growth, job creation and new economic opportunities, including in climate-related investments. Mobilizing private capital alongside our own financing allows us to extend the reach and impact of our support.”

MSMEs constitute 99.9 percent of firms in Armenia, generate 69 percent of employment and account for 65 percent of GDP. Despite their rapid expansion and importance to the economy, access to finance remains a major constraint, particularly for women-led businesses.

The OPEC Fund’s A-loan may also be used to finance eligible climate-related projects across Armenia. According to the Organisation for Economic Co-operation and Development (OECD), an estimated US$5.7 billion in investment is required for the country to meet its 2030 climate targets. Armenia’s green investment priorities include scaling up renewable energy, enhancing water and agricultural resilience and modernizing urban infrastructure.

Green finance is a strategic priority for Armeconombank, a universal commercial bank focused on small businesses and retail business development. Headquartered in the capital, Yerevan, the bank operates more than 50 branches across the country. Its partnership with the OPEC Fund began in 2023 with the approval of aUS$20 million loan to support micro and small Enterprises.

Armeconombank CEO Artak Arakelyan said: “We highly appreciate the OPEC Fund’s continued support to Armenia. Following our participation in the OPEC Fund 2026 Development Forum in Vienna, we are proud to see those strategic discussions translate into tangible economic outcomes for Armenia. These funds will facilitate our MSME clients to expand and grow, driving Armenia’s continued economic development. This landmark agreement highlights the trust placed in Armeconombank by the OPEC Fund and Allianz Global Investors, and we look forward to further strengthening this strategic partnership with OPEC Fund.”

Allianz Global Investors is a leading active asset manager with more than 700 investment professionals in 22 offices worldwide and €653 billion in assets under management.

About the OPEC Fund

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 more than US$32 billion to development projects in over 125 countries. These projects represent a total value exceeding US$240 billion, equivalent to approximately US$7.50 mobilized for every US$1 committed by the OPEC Fund. The OPEC Fund is rated AA+/Outlook Positive by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.