European bank invests in Armenian private construction company

Arminfo
12 Jan 05

YEREVAN

The European Bank for Reconstruction and Development (EBRD) has
allocated 850,000 euros to buy 28 per cent of shares of the Armenian
closed joint-stock construction concern Shen Concern, the deputy
director of the concern, Ara Asratyan, told our correspondent today.

He said that it was the first time the EBRD invested in a private
production enterprise in Armenia. He pointed out that the bank’s
investment had been channelled into the production of concrete
products and other construction materials, which are chiefly sold in
the republic. Asratyan added that the European bank had been
monitoring the operations of the company for the last two years and
made a decision to establish long-term cooperation with the
enterprise.

The contract has been concluded with the EBRD for five years and
envisages more investment in the production of construction materials
in Armenia. It is expected that after making fresh investment in April
2005, the European bank will own over 36 per cent of Shen Concern
shares. The deputy director pointed out that Shen Concern’s revenue
amounted to 1.5bn drams (3m dollars) in 2004.

The current investment portfolio of the European bank in Armenia
totals 60m euros. Armenia became a member of the EBRD in 1992.