Evocabank raises USD 10M subordinated financing from FIM

Evocabank has raised a total of USD 10 million in subordinated debt financing from funds managed by Finance in Motion, comprising USD 5 million from the European Fund for Southeast Europe (EFSE) and USD 5 million from the Green for Growth Fund (GGF).

Both funds providing the financing are managed by Finance in Motion (FIM), a specialized asset manager focused on sustainable development investments in emerging and developing markets. Finance in Motion manages a range of development finance funds, including EFSE, which focuses on financing micro, small and medium-sized enterprises (MSMEs), and GGF, which supports the green transition, energy efficiency and renewable energy development.

The financing strengthens the Bank’s Tier 2 capital base and supports the further improvement of its capital adequacy, while enabling Evocabank to expand its lending to micro, small and medium-sized enterprises (MSMEs), providing businesses with greater access to financing and supporting their continued growth and development.

Karen Yeghiazaryan, Chairman of the Management Board of Evocabank, said: “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. We remain committed to supporting the development of Armenia’s business sector by providing tailored and sustainable financing solutions.”

Jasminka Begert, Portfolio Manager, said: EFSE "Through this facility, EFSE is reinforcing its partnership with Evocabank and supporting its ability to provide longer-term financing to MSMEs across Armenia. We are particularly pleased that the investment will also help increase financing opportunities for women-led businesses, contributing to more inclusive economic growth."

Simon Gupta, Chairperson of the Board of GGF, said: "Supporting financial institutions with the capacity and ambition to scale green lending is central to GGF's mission. By further strengthening our partnership with Evocabank, we are helping expand access to sustainable finance and supporting investments that improve energy efficiency, competitiveness, and economic resilience in Armenia." 

Borislav Kostadinov, Fund Director for the Green for Growth Fund at Finance in Motion, added: "Evocabank has demonstrated strong commitment to developing its green lending portfolio. This additional investment will help the bank meet growing demand for financing energy-efficient technologies, electric mobility, and renewable energy solutions." 

Evocabank is one of Armenia’s leading commercial banks, providing a broad range of banking products and financial services to individuals, entrepreneurs, and businesses. The Bank places a strong focus on supporting micro, small and medium-sized enterprises (MSMEs), promoting sustainable business growth and expanding access to finance. Through partnerships with international financial institutions and development finance funds, Evocabank continues to strengthen its capacity to provide financing that contributes to the development of Armenia’s private sector and economy.

www.evoca.am

Finance in Motion structures, manages, and advises almost €4 billion across 9 funds, all classified as Article 9. These private market funds drive impact for people and planet through regional financial intermediaries, direct investments, advisory, and capacity building. Founded in Germany, with local expertise from Latin America to CEE, it has been investing in emerging markets for over 15 years.  

www.finance-in-motion.com

An impact investment fund: The European Fund for Southeast Europe (EFSE), established in 2005, aims to foster economic development and prosperity in Southeast Europe and the European Eastern Neighborhood Region. EFSE was initiated by KfW Development Bank with the financial support of the German Government and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors.

www.efse.lu

The Green for Growth Fund (GGF) invests in measures to reduce energy use, CO2 emissions, and improve resource efficiency in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East, and North Africa. It finances renewable energy projects, corporates, municipalities, and financial institutions, supported by its Technical Assistance Facility. GGF was established in 2009 by Germany’s KfW Development Bank and the European Investment Bank. The foundation includes a diverse investor base of donor agencies, international financial institutions, and private investors.

www.ggf.lu