Green financial solutions are becoming more accessible to micro, small, and medium-sized enterprises (MSMEs) in Armenia. "Armenian Leasing Company" UCO has announced two major collaborations in this direction. The organization, in cooperation with the "Green for Growth Fund" (GGF) and the "European Fund for Southeast Europe" (EFSE), will attract approximately €6 million in financial resources.
The agreement to launch cooperation with the GGF and EFSE funds, managed by Finance in Motion, was signed on February 19 at Pullman Residences Yerevan. These new financial resources represent some of the largest internationally sourced funds for "Armenian Leasing Company" to date, enabling the company to offer more flexible package solutions in the market.
"The funds from GGF and EFSE will allow Armenian businesses to benefit from innovative financial solutions that promote efficiency and sustainability. By supporting energy-efficient investments and the growth of MSMEs, we strengthen Armenia's economic resilience and contribute to long-term prosperity. Since its inception, our company's capital has grown nearly 13 times, exceeding AMD 2.1 billion, while our total assets have doubled annually, reaching AMD 16 billion," said Arsen Bazikyan, Co-founder and CEO of "Armenian Leasing Company."
According to him, the company continues to diversify its portfolio investments by collaborating with financial institutions, international and local banks. All resources involved are directed toward the development of Armenia's economy through the application of leasing instruments.
"The targeted resources we are attracting will primarily be directed towards financing energy-saving projects, renewable energy projects, agricultural and agribusiness equipment acquisitions, as well as new and innovative projects. Additionally, they will support digital transformations and the expansion of women's participation in business," he stated.
Arsen Bazikyan noted that the attracted financial resources are combined with state subsidy programs, creating attractive leasing acquisition conditions for clients, with annual interest rates as low as 0-2%.
Before the signing of the agreement, Andrey Stolyar, Investment Manager at Finance in Motion, stated that they were impressed by "Armenian Leasing Company’s" growth dynamics, ambitions, and determination.
"It happens that this coincides with state subsidy programs and the need to modernize Armenia’s economy. Therefore, we are happy to be part of this process, supporting "Armenian Leasing Company" with financing and technical assistance, enabling the company to develop institutionally and become a sustainable player in Armenia's leasing market. Armenia’s economy is developing quite actively, with large investment projects being implemented. Local investors are ready to invest in long-term projects. This is very positive and, I believe, lays a solid foundation for Armenia’s further economic development," he said.
Artak Manukyan, a member of the Board of the Central Bank of Armenia, welcomed the initiative on behalf of the CBA.
"The numbers confirm that we are dealing with a dynamic sector. From the Central Bank’s perspective, we have long encouraged attracting investments, and we can now say that we have reached a stage where organizations, gaining trust and capability, are able to attract investments. This is a strong indicator," said Artak Manukyan.
Edgar Zakaryan, Deputy Minister of Economy of Armenia, also noted that the international cooperation of the leasing company implies an increase in trust, which is crucial, especially in business and corporate culture.
"Leasing is one of the key tools for economic modernization, as it facilitates the acquisition of machinery and equipment, as well as technological advancements, which are essential for Armenia’s economy and productivity growth," said Edgar Zakaryan.
The $2 million financing provided by GGF to "Armenian Leasing Company" will be directed toward energy efficiency, resource optimization, and small-scale renewable energy investments. By integrating sustainability into financial services, this cooperation will allow businesses and households to access tailored leasing solutions that reduce energy costs and contribute to the development of a green economy.
The €4 million credit facility provided by EFSE to "Armenian Leasing Company" will enable businesses to acquire the necessary financial resources to modernize their operations, drive growth, and create jobs. The partnership focuses on sustainable initiatives, ensuring that businesses, including agricultural producers and farmers, have access to essential equipment and leasing solutions that enhance efficiency and ensure long-term viability.
According to Arsen Bazikyan, the team at "Armenian Leasing Company" has done significant work in adapting its product toolkit to meet the requirements of the funds, ultimately benefiting the company's clients.
"It is noteworthy that we held the signing ceremony for this cooperation agreement at Pullman Residences Yerevan, one of our financed projects. We will continue investing here. There will be new developments in our financial toolkit, and over the next few months, we will announce additional collaborations that will further enrich our offerings," he concluded.