Agrofood Equipment Leasing | Ameriabank
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Agrofood Equipment Leasing

Agrofood Equipment Leasing

Ameriabank offers a new special finance lease program implemented with the Government support and aimed at financing purchase of agrifood machinery.
The program is implemented within the scope of the Government Support Program for AgriFood Machinery Finance Lease (the “Program”) in Armenia approved by the decision of the Republic of Armenia Government N893-Լ as of July 19, 2018.

The program aims at triggering development of agrоfood and agroprocessing sectors. Lease agreements are executed for up to 8 years term. Part of interest rate is subsidized thus creating additional benefits for the lessee.


The Bank offers leasing of production equipment to the manufacturers of the following sectors:

  • Crop farming, including greenhouse business
  • Cold storage, including milk collection
  • Wine making, wine making equipment
  • Manufacturing of spring water, beer, juice and other beverages
  • Canned food production
  • Other agrofood business

Up to 8 years

Term

Subsidy

10% for AMD leasing and 6% for foreign currency leasing 

20% of the value of the leased item

Prepayment

Be Informed

Terms of Finance Lease Support Program for Purchase of Agri-Food Equipment

1.       

Down payment

20% of the leased item[i] cost

 

2.       

Down payment to value of leased item

20/100%

3.       

Currency of finance

AMD and foreign currency

4.       

Financing limit

Minimum limit: over AMD 5 million or foreign currency equivalent

The aggregate value of the equipment purchased by the same lessee under the Program may not exceed AMD 1 billion[ii]

5.       

Annual nominal interest rate

 

 

Annual percentage rate (APR)

 

 

AMD: 10-16%

Foreign currency: 6-10%

 

AMD: 10.46-17.22%

Foreign currency: 6.16-10.47%

6.       

Terms of interest rate subsidy[iii]

AMD: up to 10 p.p.

Foreign currency: up to 6 p.p.

 

7.       

Terms of interest rate subsidy

Interest rate subsidization is subject to the Program terms

Note, that interest (if any) accrued by the date of submission of the leased item to the lessee based on the acceptance act will be subsidized only for 180 days of the delivery stage (i.e. the period from Finance Lease Agreement execution date till handover of the leased item to the lessee based on the acceptance act). The interest accrued after 180 days of the delivery stage is not subject to subsidy and must be paid fully by the lessee in accordance with the interest rate specified in the agreement.

8.       

Accrual of interest

Interest accrues on outstanding principal of finance lease

9.       

Fee for provision of finance

 N/a

10.   

Lease term

1-5 years

11.   

Repayment of principal amount before due date

No fines or penalties for early repayment during the term of subsidy. If subsidy is rejected or terminated, the lessee will be required to pay a lump-sum fee of 3% of principal amount of finance, if the early repayment was made during the first 12 (twelve) months after provision of finance.

12.   

Non-payment or improper payment of principal and interest[iv]

Fine in the amount of 0.13% of overdue principal and/or interest for each day beyond terms

The amount of fines and/or penalties shall not be subsidized.

13.   

Repayments

Even monthly payments of principal as per schedule

14.   

Grace period

The grace period for principal amount of finance does not exceed 3 months following provision of finance. The obligation to pay non-subsidized interest arises at the time of provision of finance. Furthermore, upon the lessee’s request the Bank may allow payment deferral for the principal amount for up to 6 months a year.

15.   

Security

 
  • Guaranty provided by the Lessee’s director/founder/other person
  • Pledge of property/right upon request

16.   

Insurance

The leased item is insured against damage and loss on annual basis. Insurance is obtained by the Lessor.

17.   

Other terms

As per the Government decree # 893-Լ as of July 19, 2018 on approval of the Government Support Program for Agri-Food Machinery Finance Lease in Armenia.

 

The cost of the leased item includes purchase price, costs of import of the leased item into the Republic of Armenia (transportation, including related costs, customs clearance, VAT, etc.).

[ii] Other than (i) the equipment purchased by the lessee for sorting and packaging of fresh fruits, vegetables, cereals/legumes and for selection of cereals and legumes as well as (ii) vehicles used for transportation of meat purchased by persons having slaughterhouses, mobile modular slaughter units and providing slaughtering services, the aggregate value of which is under AMD 200 million.

[iii] Subsidizing of the specified interest rates is performed only for the finance lease provided from April 16, 2022 till December 31, 2022.

  • For business entities operating in border areas who receive social aid based on the RA Government decree N 1444-Ն as of December 18, 2014 interest rate is subsidized as follows (provided that the purchased equipment is used in the same areas):
    AMD: 12 p.p.

Foreign currency: 7 p.p.

Whenever applied, the maximum annual rate and/or aggregate amount of Fines and/or Penalties under the Agreement shall be within the limits defined under the laws and regulations of the Republic of Armenia.

Updated on 02.10.2023 11:21