Financed ProjectsNMC Armenia-Local Currency Loan

Identification Code:

OP/17/0013

Total Operation Cost:

2.000.000.000

Maturity:

36 months

Operation Status:

Description and Purpose of the Operation:

Local Currency Loan to National Mortgage Company, Armenia, backed by BSTDB bond issue in AMD. Provision of AMD 2 billion Mortgage Refinancing Facility the proceeds of which shall be used by the Borrower exclusively for the purpose of providing mortgage refinancing to eligible partner financial institutions in accordance with the eligibility criteria agreed with the Bank.

Countries of Operation:

Armenia (100,00 %)

Financial Product:

Loans

Sector:

Financial Institutions

Domain:

Public

Borrower/Client:

NMC is a refinancing credit organization, 100% subsidiary of CBA, which was established in 2009 to perform a specific public mandate related to development of the mortgage market in Armenia. The main objective of National Mortgage Company is to increase access to housing finance for middle-income families to improve their living conditions.

Co-Financiers/Participants:

n/a.

Guarantors/Sponsors:

n/a.

Developmental and Regional Cooperation Impact:

The loan will support the development and expansion of mortgage market in Armenia. Since it is a local currency operation accompanied by issuance of an AMD denominated bond by BSTDB, the operation is innovative and may also have a high demonstration impact. In addition, it will have benefits that result from local bond issuance such as no foreign exchange risk for the borrowers, and strengthening and deepening of the domestic financial market.

Environmental Classification and Impact (summary):

Environmental and Social (E&S) Category – FI. Mortgage financing is associated with limited E&S risks and impacts. Nevertheless, the Borrower needs to be aware of these risks and consider these issues each time a property survey is carried out as part of the mortgage loan due diligence.

Operation Leader:

Financial Institutions II

E-mail:

fi2@bstdb.org