EBRD TO MAKE LOAN OF $20MLN TO D&H GROUP LLC TO SUPPORT COMPLEX CONSTRUCTION IN YEREVAN

ARKA
Aug 6, 2008

YEREVAN, August 6. /ARKA/. The EBRD is considering making a loan of
$20 million to private Armenian company D&H GROUP LLC to support the
financing of a multi purpose complex construction of 79,330 square
meters in the city of Yerevan, Armenia.

The complex will include 315 residential units targeting the middle
class market and 19,000 square metres of international standard
office space, available for rent or sale. The totals cost of the
project is $56mln of which $20mln is to be appropriated by the EBRD
as senior loan.

This is the first real estate development project in Armenia being
considered by the EBRD. The final decision on financing is expected
in September.

This is the second project on which the EBRD will finally decide
in autumn.

The first one is about providing EUR 50mln to Electric Networks
of Armenia to be used for the renovation and modernization of 17
substations in Yerevan.

D&H GROUP LLC is a limited liability special purpose company registered
in Armenia, 90% owned by an Armenian businessman, Davit Varagyan
and his relatives, and 10% by an Armenian company, Karven Yerevan
LLC, which is 50/50% owned by Mr Viktor Kryltsov and Mr Balyan,
both existing EBRD clients with real estate development projects in
Kyrgyzstan and Kazakhstan.