As banks and development finance institutions look for new ways to support sustainable growth, local currency financing is coming to the fore as a potential tool.

Ameriabank has been recognised by the European Bank for Reconstruction and Development (EBRD) for a first-of-its-kind green leasing transaction financed in Armenian drams under the EBRD Trade Facilitation Programme.

The transaction combined local currency financing for agricultural equipment with support for women-owned businesses and small and medium-sized enterprises, creating a model that could be replicated across other emerging markets.

Trade Treasury Payments (TTP) spoke with Gayane Mirzoyan, CFA, Head of Payment Instruments Division at Ameriabank, about how the deal was structured, the role of development finance partnerships, and what local currency financing could mean for the future of sustainable trade finance in Armenia and the wider CEE region.

Building a trade finance franchise

TTP: Can you briefly introduce Ameriabank and your role within the organisation?

Gayane Mirzoyan (GM): As Head of Payment Instruments Division at Ameriabank, I am responsible for bank guarantees, letters of credit, escrows, and other trade-related products.

Ameriabank is a leading financial and technology company in Armenia and the country’s market leader in trade finance. We have an extensive network of partner banks and cooperate closely with multinational development banks such as the EBRD, IFC, and ADB. We hold both issuing bank and confirming bank status with these institutions under their trade finance programmes.

In addition to these roles, we have a revolving credit agreement with the EBRD that allows us to access funding directly for trade finance purposes.

Ameriabank, as part of the London-listed Lion Finance Group, has been included in the FTSE 100 Index. As a member of the group, Ameriabank is the first Armenian institution to be represented within one of the London Stock Exchange’s leading indices.

I have been with Ameriabank since 2012, and it has been an amazing journey of development. During this time, I earned my master’s degree, participated in numerous courses, conferences, and events, and transitioned into a leadership role. Last year, I also received my CFA designation.

Ameriabank has always stood out in the trade finance market due to our flexibility in using trade instruments and our ability to structure transactions using multiple financing tools to best meet clients’ needs. This is a role that constantly pushes us to think outside the box and find new ways to address our clients’ objectives.

A replicable first for local currency green leasing

TTP: You were recognised for a first-of-its-kind green leasing transaction in local currency. Can you talk us through this deal and why it was a ‘first’?

GM: We have a revolving credit agreement with the EBRD, and last year we became the first bank to add local currency, Armenian drams, as a financing currency under this arrangement.

We completed a number of transactions in Armenian drams afterwards, and one of them was recognised for its uniqueness, securing us the Green Deal of the Year award.

The award was presented during the EBRD Annual Meeting in Riga at the Trade Facilitation Programme awards ceremony.

The transaction combined several financial leases for agricultural equipment financed in Armenian drams, which qualified as green under the EBRD’s criteria. Some of the lessees were also women-owned businesses.

This was the first local currency leasing transaction to be financed under the EBRD Trade Facilitation Programme.

At the same time, it incorporated many of the priorities promoted by development finance institutions, including closing gender gaps, supporting the green transition, and helping local SMEs grow.

TTP: What were the main challenges in structuring a green transaction in local currency, and how did your partnership with EBRD TFP help overcome these?

GM: There were no major challenges, as we have sufficient local currency financing capacity. However, our partnership with the EBRD allowed us to access funding at a very competitive rate.

The clients involved in this transaction wanted to strengthen their agricultural operations while investing in more productive and environmentally friendly solutions.

Our revolving credit agreement with the EBRD enabled local currency financing, while the EBRD’s preferential pricing for green projects made the economics even more attractive.

We worked closely with the EBRD to confirm the transaction’s eligibility under the programme and to obtain approval for green financing.

The combination of competitive pricing and the EBRD’s flexibility around new instruments enabled our clients to access the best equipment at the best possible cost, helping them enhance their business operations.

At the same time, this transaction addressed a critical industry challenge by attracting foreign funding while eliminating foreign exchange risk for clients. It also created a repeatable model that could be adopted by other institutions.

Scaling sustainable finance across the region

TTP: How does this transaction reflect a broader shift in how trade finance and leasing can support sustainable growth in your market?

GM: For equipment purchases, leasing is one of the key financing instruments alongside traditional lending. One of its main advantages is that it does not require additional collateral from the customer, which can drive strong demand depending on the sector.

In recent years, the Armenian government has introduced a number of subsidy programmes to support different industries and encourage the adoption of sustainable and green technologies.

As a result, financing is becoming more closely linked to environmental, social, and governance outcomes, with banks taking a more proactive role in shaping client decisions and investment behaviour.

Sustainability is embedded in our core business strategy.

Our contribution to Armenia’s sustainable development is delivered through green finance, SME support, and innovation. We align our lending and governance practices with the UN Sustainable Development Goals, helping to reduce emissions, support entrepreneurship, and modernise the economy.

Since 2009, we have invested more than $300 million in renewable energy and energy efficiency projects, and we were the first institution in the Eastern Partnership region to issue green bonds.

ESG considerations are embedded in our lending decisions, and through partnerships with development finance institutions and programmes such as the EBRD Trade Facilitation Programme, we can share risks and support sustainable financing at scale.

This helps make sustainability-linked transactions commercially viable while expanding access to finance for SMEs and other priority sectors.

Banks need to be proactive in identifying opportunities where trade finance instruments and participation in development programmes can create additional value for clients while advancing green transition goals.

Markets are constantly evolving, and the instruments used to serve them must evolve as well. Otherwise, those opportunities will be lost to competitors.

TTP: Looking ahead, do you see local currency financing becoming scalable across Armenia and the CEE region?

GM: Yes, absolutely.

As local currencies continue to stabilise and international partners expand programmes such as the EBRD’s local currency financing initiatives, local currency financing will become increasingly scalable.

Its long-term success will depend on a number of factors, particularly whether pricing remains competitive with hard currency alternatives.

However, over the medium to long term, I believe local currency financing will become much more widely adopted across Armenia and the wider CEE region.