ENA - Convertible Mezzanine Loan



Project number:


Business sector:

Power and energy

Notice type:


Environmental category:




PSD disclosed:

25 Oct 2018

Translated version of this PSD: Armenian

Project Description

A subordinated loan with a conversion option of up to USD 10 million to Electric Networks of Armenia ("ENA" or the "Borrower" or the "Company") to finance part of ENA's 2nd stage of investment
program (2019-27) for modernization of the distribution network including introduction of smart metering across Armenia, and to support the Company in improving its corporate governance

Project Objectives

The loan will support the Borrower in (i) improvement of ENA's transparency and corporate governance practices and (ii) modernisation of outdated Armenian power infrastructure.

Transition Impact

This project is expected to contribute to (i) the Well-Governed quality by improving the corporate governance standards in ENA and providing a demonstration effect to other companies active
in Armenia; and (ii) the Green quality by improving energy efficiency by reducing technical and commercial losses with corresponding direct carbon emissions reductions in line with the EBRD Green Economy Transition ("GET") mandate.

Client Information


ENA is a closed joint stock company established under the laws of Armenia, which is involved into electricity transmission and distribution in the country. ENA is 100% owned by Tashir Group, a large diversified group of over 200 industrial and construction companies, which in its turn is ultimately controlled by the Armenian-born entrepreneur Samvel Karapetyan and his family members.

EBRD Finance Summary

USD 10,000,000.00

Total Project Cost

USD 40,000,000.00

Environmental and Social Summary

Environmental and social issues associated with the modernization of existing distribution networks, limited to low voltage lines, are site specific and can be readily assessed and identified as part of
an Environmental and Social Due Diligence (ESDD) and addressed through mitigation measures.

The investment program which aims to achieve energy efficiency measures is predicted to result in significant environmental benefits. Through the previous project financed by the Bank, the Company has strengthened its the corporate EHS management structure, is addressing key risks and improved its E&S management and community engagement practices. Under the current project, the due diligence focused on the investment program targeting the modernization of the existing low voltage lines and substations. The due diligence did not identify any significant environmental or social issues. Less significant issues resulted in recommendations for improvements which have been incorporated into the existing Environmental and Social Action Plan (ESAP). The Bank will continue to monitor ENA's performance through review of annual reports and undertaking monitoring visits as required.

Technical Cooperation

The Project will mobilize EBRD Shareholder Special Fund (up to EUR 200,000) to engage a team of consultants to assist the Bank with supporting ENA in implementing the Corporate Governance
Action Plan.

Company Contact Information

Armen Arshakyan


Business opportunities

For business opportunities or procurement, contact the client company.

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