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24.02.2022

CROSS CURRENCY SWAP, FIRST TRANSACTION

Following the Master Agreement signed in the autumn of 2021, Amundi-Acba Asset Management and the European Bank for Reconstruction and Development (EBRD) engaged in the first cross currency swap transaction on 15th of February, 2022 with an amount of USD 5.74 million.

This transaction enables:

  • Amundi-Acba to improvethe capacity of managing exchange rate risks of 3 pension funds it manages,
  • EBRD to support the development of Armenian economy by providing local currency financing to the private sector,
  • To introduce this transaction to the capital markets thus strengthening the development of derivatives and capital markets in Armenia.

In November of 2021 for the first time in Armenia 2002 ISDA® Master Agreement, published by the International Swaps and Derivatives Association (ISDA®), including a1995 Credit Support Annex there to which allows them to engage in over the counter currency swap transactions in the future. This is the first time EBRD engaged with an asset management company in Armenia and it is the first time EBRD entered into an ISDA Master Agreement in Armenia.

Amundi-ACBA Asset Management is the leading mandatory pension funds manager in Armenia, with assets under management surpassing 250 billion AMD. 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.

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 in 1992, the Bank has invested €1.7 billion in 195 projects in its financial, corporate, infrastructure and energy sectors, with 91 per cent of investments in the private sector.

Updated 25.04.2022 | 14:28