Evocabank secures $10M in debt to boost MSME and green lending

What's the deal? Armenia's EvocabankDealroom has a profile for this one. Try Dealroom → has raised $10 million in subordinated debt from two funds managed by Finance in MotionDealroom has a profile for this one. Try Dealroom →. The European Fund for Southeast Europe (EFSE)Dealroom has a profile for this one. Try Dealroom → and the Green for Growth Fund (GGF)Dealroom has a profile for this one. Try Dealroom → each provided $5 million.

Why now? The financing strengthens Evocabank's Tier 2 capital base and supports its capital adequacy. That gives the bank room to expand lending to micro, small, and medium-sized enterprises (MSMEs).

What's the endgame? Evocabank wants to widen access to financing for Armenian businesses, including women-led ones, and grow its green lending portfolio. GGF's investment targets energy-efficient technologies, electric mobility, and renewable energy.

"Strengthening our capital base through this subordinated financing will further support Evocabank's growth and resilience, while enabling us to expand access to financing for MSMEs," said Karen Yeghiazaryan, chairman of the management board.

Finance in Motion is an asset manager focused on sustainable development in emerging markets. EFSEDealroom has a profile for this one. Try Dealroom → backs MSME financing, while GGF supports energy efficiency and renewables.

The signal: Development finance continues to flow into Armenian banks tied to small-business and green lending — a sign of where capital is heading in the region's emerging markets.

Read more: tert.am

Image credit: 1010 Climate Action