Loan for renewable energy terms

	1. LOANS (A.4.1, A.4.2)
#	Terms and conditions	Renewable energy loans (A.4)						If financed under GAF Renewable Energy Program (positive financial and technical conclusion of project consultant is required)
	Eligible projects	Construction or renovation of solar, hydro and wind power plants for industrial or business’s own purposes, subject to availability of all approvals and permits required under applicable law for such business
1	Loan amount	AMD or other currency equivalent of up to USD 10,000,000						Loans provided in AMD only
2	Loan term	A.4.1 – max 15 years A.4.2 – max 8 years						Up to 12 years
3	Grace period (for principal):	Up to 3 years						Up to 2 years
		AMD		USD		EUR		Starting from 9.5%
	Annual interest rate A.4.1	Floating	Fixed	Floating	Fixed	Floating	Fixed
4		Starting from 10.5%[i]	Starting from 11.9%	Starting from 7.9%ⁱ	Starting from 9.0%	Starting from 6.3%ⁱ	Starting from 8.0%
	Description of floating component	4.4% fixed component + variable component (yield-before-maturity of 6-month government bonds of Armenia)		5.6% fixed component + variable component (ICE LIBOR USD 6 Month)		6.3% fixed component + variable component (ICE LIBOR EUR 6 Month – only where positive)
	Annual interest rate [ii] A.4.2	AMD		USD		EUR
		Floating	Fixed	Floating	Fixed	Floating	Fixed
		Starting from 11.5%ⁱ	Starting from 12.9%	Starting from 8.9%ⁱ	Starting from 9.9%	Starting from 7.3%ⁱ	Starting from 9.0%
	Description of floating component	5.4% fixed component + variable component (yield-before-maturity of 6-month government bonds of Armenia)		6.6% fixed component + variable component (ICE LIBOR USD 6 Month)		7.3% fixed component + variable component (ICE LIBOR EUR 6 Month – only where positive)
5	Loan disbursement fee (chargeable lump-sum at the time of disbursement ) The bank can define a schedule for payment of the loan disbursement fee, in which case any fee outstanding at the time of the loan prepayment (before the due date) will be payable together with prepaid loan amount or in whatever other manner the bank may decide.	Loans with less than 1-year term: 0-0.5% of contractual loan amount 1-2 years: 0-0.7% of contractual loan amount More than 2 years: 0-1.5% of contractual loan amount Loans secured by cash: 0%						Up to 1.5%
6	Late payment fee [iii]	Fine in the amount of 0.13% of overdue loan/interest for each day beyond terms
8	Loan repayment	As per schedule or at the end of term (monthly, quarterly, semi-annually or otherwise as defined under loan agreement)
9	Early repayment (prepayment)[iv]	Early repayment fee in the amount of up to 6-month interest on repaid sums where envisaged under loan agreement
10	Loan security	Cash, T-bills, standard gold bars, bonds issued by Ameriabank
		Property and equipment, guarantees and warranties, other securities
		Cash flows, working assets or mixed collateral
		Personal guarantees of founders/ultimate beneficiaries of business as additional security
11	Loan-to-value (LTV) ratio [v]	Max 100%, if the currency of loan is the same as that of collateral or, if different, it is included in SDR basket, and max 95%, if the currency of loan is different from that of collateral, except for currencies included in SDR basket
		a) Up to 80% of appraised value of collateral (in case of real estate) for loans with up to 96-month term; 90% if the debt service coverage ratio of the borrower is 1.5 or higher; up to 70% if the loan term exceeds 96 months b) Up to 50 % of appraised value of collateral in case of movable property; 60% if the debt service coverage ratio of the borrower is 1.5 or higher and the loan term does not exceed 96 months up to 80% for the movable property which is going to be purchased or has been purchased during the last six months, starting from the loan application submission date, where the loan term does not exceed 96 months c) Up to 30 % of appraised value of collateral in case of inventories (finished goods, raw materials, etc.). Note that the share of this kind of collateral cannot exceed 40% of total pledge. d) max 50% of average monthly bank account turnover for the most recent period from 6 (min) to 12 (max) months, for cash flows e) for shares: - up to 80% of appraised value of collateral in case of running business - up to 60% of appraised value of collateral in case of business not yet running (project-based loansiv)
12	Insurance of the collateral	To the extent of outstanding loan, on annual basis
13	Application handling and notification period	Up to 15 business days following receipt of complete set of documents
		Depending on the case, these terms may be extended for an additional period of not more than 10 business days.
14	Validity period (period during which loan approval is effective)	- 45 days, unless otherwise specified by the authorized body’s decision
15	Loan re-approval	Upon expiry of validity period but not later than within 60 days after initial loan approval date
16	Account with Ameriabank CJSC	Required
17	Loan modification application fee [vii]	AMD 500,000
18	Other terms						60% of energy audit fee under the financing program is payable by the borrower.

[i] Max term for loans at fixed rates in AMD is 5 years, max term for loans in USD and EUR is 10 years.

[ii]The floating rate specified in clause 4 above can differ from the current one depending on revisions of the variable component.

[iii] The interest rate specified in the loan agreement will continue to be applied to overdue loans.

[iv]Whenever applied, the maximum annual rate and/or aggregate amount of fines and/or penalties under the agreement will be within the limits defined under the laws and regulations of the Republic of Armenia.

[v]Where the guarantee is the main security and there are pledged items as well, loan-to-value ratio is not applicable. This being the case, the nature of security (main or additional) is defined in loan conclusion and approved by the authorized body.

[vi] Where the project loans are concerned, if the project owner/contractor has implemented similar projects earlier, the LTV ratio is up to 80 percent of the appraised value of the collateral.

[vii] Loan modification fee will be payable by the client in case the application for revision of terms was submitted by the client at their initiative and approved by the bank. The fee is paid based on analysis and conclusion prepared by relevant department of the bank on the basis of the client’s application. In other cases of modification of the loan terms, charging of the fee will be subject to the decision of the Large Credit Committee.

Collateral Appraisal

Fixed assets should be appraised by an independent company cooperating with the bank, subject to the company’s tariffs. Appraisal costs will be borne by the borrower. Appraisal costs vary within AMD 13,000-30,000 depending on the property type. Appraisal fee for the large property will be quoted on a case-by-case basis (negotiable).

Collateral Registration

All collateral registration costs (notarization, registration at the relevant branch of State Committee of the Real Estate Cadaster) will be borne by the borrower.

Such fees include:

Legal (notary) fee: AMD 14,000-16,000 (lump sum), if the loan is secured by a vehicle
Legal (notary) fee: AMD 13,000-20,000 (lump sum), if the loan is secured by real estate
Fee for statement from the cadaster on the real estate encumbrance: AMD 10,000
Security interest filing fee (for real estate): AMD 26,000
Armenian Police fee (lien and security interest in movable property): AMD 5,000 (lump sum)

Collateral insurance

To the extent of the principal/outstanding loan, on annual basis. The collateral shall be insured by independent insurance companies cooperating with the bank. The following items are subject to insurance: real estate, except for land, movable property, inventories, such as finished goods, raw materials, etc. (upon request). Insurance costs shall be defrayed by the borrower.

When applying for a loan, make an informed decision

Terms
Terms (effective from 06.07.2021 to 17.07.2022)
Information guide to SME Loans Provided to Corporate Clients
List of required documents
List of appraisers cooperating with Ameriabank
Loan application
List of appraisers cooperating with Ameriabank

Loan rates can be variable/floating, in which case supplementary agreements on variable component are executed

Renewable Energy Loans Terms

Renewable Energy Loans Terms