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07.12.2021

Derivatives Master Agreement HAS BEEN SIGNED

Amundi-Acba Asset Management and Europian Bank of reconstruction and Development (EBRD) are joining forces to facilitate access to local currency funding and strengthen the local capital market in Armenia. 

Amundi-Acba Asset Management and  Europian Bank of reconstruction and Development (EBRD) are joining forces to facilitate access to local currency funding and strengthen the local capital market in Armenia. The parties signed a 2002 ISDA® Master Agreement, published by the International Swaps and Derivatives Association (ISDA®), including a 1995 Credit Support Annex thereto which allows them to engage in over the counter currency swap transactions in the future.

  • Improving hedging capacity of Amundi ACBA’s pension funds
  • EBRD to step up support for Armenian Dram denominated loans to the private sector
  • Currency swaps strengthen development of capital markets in Armenia.

The 2002 ISDA® Master Agreement serves as a framework setting out the legal and credit terms for the parties that apply to all derivatives transactions that those parties will enter into in the future. The1995 Credit Support Annex sets out the terms of the collateralization of such derivatives transactions between the same parties. The currency swaps will enable Amundi ACBA to hedge its funds against currency risk whilst making long-term hard currency denominated investments abroad, and provide the EBRD with further access to on-shore local currency funding in Armenian Dram for on-lending to its clients. 

This is for the first time EBRD is engaging with an asset management company acting in Armenia, and it is for the first time a derivative master agreement is signed in Armenia.

Updated 19.04.2022 | 11:56