Yerevan, Armenia, July 9, 2010—IFC,
a member of the World Bank Group, is joining forces with the European Bank
for Reconstruction and Development to facilitate development of business
infrastructure and create employment in Armenia by supporting construction
of Elite Plaza, the first high-class multipurpose office building in Yerevan.
IFC and EBRD will provide loans of $5.4 million and $3.6 million, respectively,
to Elite Group, a leading property development company with operations
in Armenia and Georgia, to build an 18-store building that will accommodate
office, retail, conference, and exhibition areas to meet the growing demand
for high-quality office space in Armenia.
In addition to long-term financing, which is not currently available in
the market, IFC will provide Elite Group with sector expertise and know-how
to help the company develop and operate its first office building project
applying international safety and environmental standards, thus setting
a market benchmark for other local developers.
“IFC’s investment will help support real estate and construction which
form an important part of Armenia’s economy and employment,” said Thomas
Lubeck, IFC Regional Head, Caucasus. “We are delighted to partner
with Elite Group to create the business center of international standards.”
The investment is a part of the two institutions’ regional strategy to
support development of infrastructure in emerging markets.
“This project is EBRD’s second investment with the Elite Group, a company
that is committed to implementing advanced technologies in its work,”
said Sasha Babayan, the EBRD Banker at the Yerevan Resident Office.
“The new business center will set a precedent for high-quality standards
in Armenia’s construction industry and will attract local and international
IFC has been investing in Armenia since 2000 to support financial institutions,
small retailers, and the hotel industry, among others. It also has implemented
advisory projects to strengthen the financial sector, establish a sustainable
market for energy efficiency and renewable energy investments, and improve
the country’s business environment.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing capital for private enterprise, and providing advisory and risk
mitigation services to businesses and governments. Our new investments
totaled $14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.
The European Bank for Reconstruction and Development, owned by 61 countries
and two intergovernmental institutions, aims to foster the transition from
centrally planned to market economies from central Europe to central Asia.
The EBRD is the largest single investor in the region and mobilizes significant
foreign direct investment beyond its own financing. For more information,