EFSE strengthens partnership with Evocabank through USD 5 million subordinated facility to expand MSME financing in Armenia

Frankfurt am Main and Yerevan, October 1, 2026 – The European Fund for Southeast Europe (EFSE) has provided a USD 5 million subordinated loan facility to Evocabank, further strengthening the bank's capital base and supporting the expansion of financing for micro, small, and medium-sized enterprises (MSMEs) across Armenia.

The seven-year facility, structured as a Basel III-compliant Tier 2 instrument, builds on EFSE's existing partnership with Evocabank. The investment will support the bank's growth plans and increase its capacity to provide longer-term financing to Armenian MSMEs for both working capital and investment purposes with a special focus on women-owned or women-led businesses to foster inclusive economic development. Through the facility, EFSE expects to enable more than 1,300 sub-loans and support approximately 2,500 jobs, helping local businesses invest, strengthen their competitiveness, and build resilience.

"Through this facility, EFSE is reinforcing its partnership with Evocabank and supporting its ability to provide longer-term financing to MSMEs across Armenia. We are particularly pleased that the investment will also help increase financing opportunities for women-led businesses, contributing to more inclusive economic growth." - Jasminka Begert, Portfolio Manager, EFSE

Karen Yeghiazaryan, chairman of the Management Board of Evocabank, said: “Strengthening our capital base through this subordinated financing will further support Evocabank’s growth and resilience, while enabling us to expand access to financing for MSMEs. We remain committed to supporting the development of Armenia’s business sector by providing tailored and sustainable financing solutions.” 

 

About EFSE

An impact investment fund established in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the European Eastern Neighborhood Region. EFSE was initiated by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors. Finance in Motion Asset Management S.à r.l., serves as EFSE’s Portfolio Manager and Hauck & Aufhäuser Fund Services S.A., Luxembourg, acts as manager.  

For more information on the European Fund for Southeast Europe, please visit: www.efse.lu  

About Finance in Motion

Finance in Motion structures, manages, and advises almost €4 billion across 10 funds, all classified as SFDR Article 9. These private market funds drive impact for people and planet through regional financial intermediaries, direct investments, advisory and capacity building. Founded in Germany, with local expertise from Latin America to Eastern Europe, it has been investing in emerging markets for over 20 years.  

For more information, please visit: www.finance-in-motion-com    
 

About Evocabank:

Evocabank is one of Armenia’s leading commercial banks, providing a broad range of banking products and financial services to individuals, entrepreneurs and businesses. The Bank places a strong focus on supporting micro, small and medium-sized enterprises (MSMEs), promoting sustainable business growth and expanding access to finance. Through partnerships with international financial institutions and development finance funds, Evocabank continues to strengthen its capacity to provide financing that contributes to the development of Armenia’s private sector and economy.

 

Media Contacts: 

EFSE: Nusha Westhoff 
Director Marketing & Communications 
+49 69 271 035-789 
press@efse.lu