Evocabank Partners with IFC to Boost Financial Inclusion

Evocabank will raise USD 10 mln loan and up to USD 10 mln loan to expand financing, support local businesses, and drive growth in Armenia's economy.

Evocabank has signed a new loan agreement with IFC, a member of the World Bank Group. As part of this collaboration, IFC will provide a USD 10 million loan to Evocabank and also aims to syndicate up to USD 10 million from other partners, enabling the Bank to expand its financing options.

IFC's partnership with Evocabank aims to increase access to finance for micro and smaller businesses, particularly climate projects and women-owned enterprises.

Smaller businesses are key drivers of economic growth, innovation, and employment in Armenia, with micro, small, and medium enterprises (MSMEs) accounting for the majority of jobs. However, they face a USD 1.1 billion financial gap because of challenges including limited collateral and poor financial management. Women-owned MSMEs face even greater hurdles, with many less likely to hold collateral or have access to formal bank accounts and loans.

IFC will provide USD 10 mln loan to Evocabank and also aims to syndicate up to USD 10 mln from other partners to support on-lending to MSMEs. Half of the proceeds will be allocated to climate projects and 25 percent to women-led enterprises. The partnership will also support the development of climate finance by promoting green lending standards.

Karen Yeghiazaryan, Chairman of the Management Board of Evocabank, said: “We are proud to announce another project within the scope of Evocabank’s long-lasting successful partnership with IFC. This collaboration includes a USD 10 mln senior loan and is also aimed at attracting up to USD 10 mln focused on financing micro, small, and medium-sized enterprises (MSMEs), with a special emphasis on supporting climate initiatives and women in business. By prioritizing sectors that drive environmental sustainability and empower women entrepreneurs Evocabank proves its commitment to making a meaningful impact on society. Together with IFC, we are shaping a brighter and more inclusive future for Armenian economy.”

Ivana Fernandes Duarte, IFC's Regional Manager for the South Caucasus, said: “Smaller businesses are the backbone of Armenia’s economy, yet many struggle to access the financing they need to grow and thrive. Our partnership with Evocabank aims to help bridge this gap by providing targeted support for climate-focused projects and women-led enterprises, unlocking opportunities that drive innovation, sustainability, and inclusive economic growth.”

IFC has partnered with Evocabank since 2021, providing the Bank with a USD 15 mln loan to support its working capital and trade-related lending program so that MSMEs could stay afloat, recover, and thrive after the pandemic. In 2022, to ease access to finance for smaller businesses amid the lingering impacts of COVID-19, IFC provided another USD 15 mln loan to Evocabank.

Evocabank has also participated in IFC's DigiLab program, given the Bank’s focus on digital banking. The program aimed to support the Bank with a digital strategy and roadmap to better serve the Bank's clients through innovation adapted to the local market needs.