The European Bank for Reconstruction and Development European Bank for Reconstruction and Development and Inecobank CJSC Inecobank CJSC are providing support for the development of a new green mixed-use residential complex in Yerevan, Armenia. Through their joint risk-sharing facility, they will offer a senior secured loan of up to US$ 30 million (€26 million).
The financing will be provided to Nuovo Velodromo LLC, a newly created special-purpose company co-owned by Renco Group S.P.A. Renco Group S.P.A. and its Armenian partner, the Adamium group of companies Adamium. The loan will help fund the construction of a mixed-use residential development with an estimated total area of 47,000 square metres.
The overall project cost is projected at approximately US$ 92 million (€79 million). The remaining capital will come from equity provided by the sponsors, along with proceeds generated from pre-selling residential units. This development is planned as the only mixed-use residential property in Armenia designed to meet recognised international green building standards.
It will pursue LEED Gold certification LEED, demonstrating high construction quality and strong energy-efficiency performance. Because of its green design, all EBRD financing for the project qualifies as Green Economy Transition (GET) funding.nThe project is consistent with the EBRD’s country strategy for Armenia, which prioritises strengthening private-sector competitiveness, improving business transparency and governance, and promoting a more supportive investment environment.
This is the fourth transaction completed under the EBRD’s risk-sharing facility with Inecobank. The facility is part of the Bank’s Small Business Initiative Small Business Initiative, a programme aimed at supporting the development of local private enterprises by allowing the EBRD to share lending risks with partner banks through funded or unfunded participation.
The EBRD is one of Armenia’s largest institutional investors. Since beginning its operations in the country, it has invested nearly €3 billion across 243 projects, contributing to the growth of private industry as well as key sectors such as energy, infrastructure, telecommunications, and financial services.
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