Projects in Armenia

Project Summary Documents

Project Summary Documents (PSDs) are disclosed for each project prior to Board consideration. They contain project descriptions, financial details, client information, environmental issues, tender guidelines, and contact details. PSDs for private sector projects are disclosed at least 30 days prior to Board consideration and for state sector projects, at least 60 days.

Project Summary Documents

Signed projects

Board approval is the final stage in the project approval process. After Board approval, the EBRD and the client sign the deal and it becomes legally binding. Signed project lists reflect year-end data.

Signed projects  (0.1Mb)

Case studies

Yerevan Brandy Company

Brandy drinkers throughout Russia and the CIS are now sipping Armenia's famous Ararat blend thanks to EBRD support for the Yerevan Brandy Company (YBC).

The Bank provided YBC, Armenia's largest brandy producer and a subsidiary of Pernod Ricard S.A., with a US$ 20 million loan to refurbish the company's production facilities, increase capacity and strengthen its working capital.

The investment has bolstered Armenia's agricultural sector, with farmers able to plan their cash flows in advance, following a commitment from YBC to purchase almost 15,000 tonnes of grapes from more than 3,000 Armenian growers at pre-agreed prices.

With the EBRD loan, YBC has modernised the Yerevan production facilities, selectively increased production capacity and improved the overall quality of its product. The financing has also strengthened the company's balance sheet, allowing it to finance spirit stocks and address permanent working capital requirements.

In 2001, the company expanded into new markets and increased sales by 80 per cent.

Regional support for Caucasus drinks industry

France’s Groupe Castel is the leading distributor of wine in Europe and the second biggest worldwide. Hoping to establish a foothold in the emerging markets, Castel was one of the very first international companies to invest in the Caucasus in 1997.

Over the past six years the group has developed its presence in the market in beer, wine and water across Armenia, Azerbaijan, Georgia and Russia. But despite its successes elsewhere, Castel struggled to make its investments deliver the required returns.

In late 2001 the company set about a wholesale restructuring of its businesses in the region, and sought assistance from the EBRD. As a result, the Bank is acquiring a 35 per cent stake in the holding company to help Castel restructure the production and distribution processes of its subsidiaries.

The stronger management structure and improved standards of corporate governance will assist the company in getting back on track. This transaction will also act as a model for similar projects in this challenging region and should help to attract additional investment.

“Groupe Castel is determined to make its investments in the Caucasus a success and with the EBRD alongside this is more achievable than ever,” said Pierre Castel, President of Groupe Castel. Castel is also active in Central Asia and is considering further investments in this region with the support of the Bank.