OFID extends loan to Ardshinbank of Armenia

Vienna, Austria, April 1, 2015. The OPEC Fund for International Development (OFID) has signed a US$10m loan agreement with Armenia’s Ardshinbank to be used for on-lending to SMEs involved in the construction and operation of small-scale hydropower plants (SHPPs).

 Ardshinbank is the third largest bank in Armenia. Their existing loan portfolio to entities involved in SHPPs comprises a market share of 33.3 percent. CEO, Mher Grigoryan, explained that the bank was purposely pursuing commercially viable projects in SHPPs to support Armenia’s socioeconomic development.

 Speaking at the loan signing ceremony held at OFID’s headquarters, Grigoryan said: “SHPPs contribute to broadening access to energy throughout the country and serve as catalysts in stimulating job creation and income generation for socially vulnerable groups of the population.”

 OFID Director-General, Suleiman Al-Herbish, expressed his satisfaction that OFID was continuing its support to the Armenian energy sector. “I have seen during my visits to Armenia just how critical the energy situation is, so I am delighted that we are now expanding our activities to renewables, and in particular to these small scale hydropower projects,” he stated.