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EBRD and Amundi-Acba Asset Management collaborate on cross-currency repo transaction

16 January 2024, Yerevan. EBRD and Amundi-Acba Asset Management have executed the first cross-currency repo transaction.

  • The EBRD and Amundi-Acba continue close collaboration with a landmark transaction
  • Cross-Currency Repo transaction supports local currency denominated loans to private sector
  • This innovative transaction improves the efficiency of managing pension funds and strengthens development of capital markets in Armenia

The European Bank for Reconstruction and Development (EBRD) and Amundi-Acba Asset Management  are joining forces to facilitate access to local currency funding and strengthen the local capital market in Armenia.

In this innovative move, the EBRD and Amundi-Acba have executed the first cross-currency repo transaction, setting a new boundary for secure and strategic financial transactions in Armenia.

In this landmark transaction, the EBRD pledged hard currency denominated high-quality liquid assets, receiving local currency funds in return. This cross-currency repo agreement serves as a secure avenue for Amundi-Acba to deploy the pension funds’ assets, aligning with their commitment to prudent financial management.

For EBRD, the transaction secures long-term Armenian dram (AMD) funds at onshore market rates, contributing to the strengthening and diversifying of its funding sources. The transaction was executed under Global Master Repurchase Agreement (GMRA) which was signed between two entities as of 21 June 2023.

The economic impact is significant, as EBRD is dedicated to maximizing the transaction's effect. The proceeds will be strategically reinvested into the real economy, creating a positive transition impact, and contributing to sustainable development goals.

"EBRD continues investing in local market’s financial capacity and know-how by employing simple, yet innovative products in its portfolio management. Cross-Currency Repos will be an additional tool in arsenal to expand and fortify our funding base in AMD." Said Gursu Keles, EBRD Associate Director, Senior Trader.

"This is another innovation we are introducing during our fund management activity, which enables Amundi-Acba to deploy the pension funds’ assets more effectively and contributing to the local capital market development", said Hrayr Aslanyan, Deputy CEO, Fund manager at Amundi-Acba.

Amundi-Acba Asset Management manages 3 mandatory pension funds in Armenia, with assets under management surpassing 400 billion AMD (900 million EUR). Owned by Amundi, the leading European asset manager and ACBA Bank, one of the leading banks in Armenia, the company has extensive expertise in fund management.

This is the second time EBRD engages with Amundi-Acba Asset Management in Armenia. The agreement is part of the EBRD’s efforts to step up its drive to source local currency lending and further develop the capital markets in Armenia. This innovative transaction ty secures reliable access to domestic currency liquidity while eliminating the foreign currency risks for local borrowers.

The EBRD is the leading institutional investor in Armenia, active in all sectors of the economy. Since the start of its operations in the country, the Bank has invested over €2 billion in 210 projects in its financial, corporate, infrastructure and energy sectors, with 91 per cent of investments in the private sector


Updated 12.02.2024 | 12:43