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Amundi-Acba and the National Mortgage Company Signed the First Hedging Agreement
Yerevan, February 11, 2025
Amundi-Acba Asset Management and the National Mortgage Company have joined forces to:
- Hedge the foreign exchange risk of the pension funds managed by Amundi-Acba, as well as the green bonds issued by the National Mortgage Company,
- Foster the improvement of mortgage financing in Armenia,
- Contribute to the development of the derivative market in Armenia through foreign exchange swaps.
On February 4, 2025, the first foreign exchange swap transaction was performed with the amount of USD 10 million.
On the same day, the parties signed the 2002 ISDA® Master Agreement published by the International Swaps and Derivatives Association (ISDA®), including the 1995 Credit Support Annex, enabling the execution of over-the-counter foreign exchange swap transactions. This marks the first foreign exchange swap transaction of the National Mortgage Company with an asset management company.
Amundi-Acba Asset Management was founded in 2013. The company manages three mandatory pension funds having around AMD 571 billion assets under its management as of January 31st, 2025.
The company's shareholders are the French Amundi, the leading European Asset Manager with 2,240 trillion Euros in assets under management as of December 30, 2024 and Acba Bank, one of the largest financial institutions in Armenia, represented throughout the country with 65 branches.
The National Mortgage Company (NMC) is a refinancing credit organization founded in 2009, with the Central Bank of Armenia as its sole shareholder. By raising resources from capital markets and through strategic partnerships and initiatives, NMC provides affordable mortgage solutions tailored to the needs of middle- and low-income families, aiming to improve their housing conditions.
NMC pays special attention on energy-efficient housing solutions, aligning with and promoting the Sustainable Development Goals (SDGs). The company also prioritizes social programs, contributing to financial inclusion. As of the end of 2024, NMC collaborates with 15 banks and 9 credit organizations.
