The European Bank for Reconstruction and Development (EBRD) and Inecobank CJSC are supporting the development of a green mixed-use residential complex in Yerevan, the Armenian capital, with a senior secured loan of up to US$ 30 million (€26 million) under their risk-sharing facility, according to a press release. The financing will be extended to Nuovo Velodromo LLC, a newly established special purpose vehicle. The project aims to promote green building standards and urban regeneration in Armenia. It marks the fourth deal signed under the EBRD’s risk-sharing facility with Inecobank. The transaction aligns with the EBRD’s country strategy for Armenia.
Nuovo Velodromo LLC is co-owned by Renco Group S.P.A., a leading Italian construction company, and its local partner, the Adamium group of companies. The funds will finance the construction of a mixed-use residential complex with a total area of approximately 47,000 square meters. The total cost of the project is estimated at around US$ 92 million (€79 million). The remaining financing will be covered by equity contributions from the sponsors and proceeds from apartment pre-sales. The initiative reinforces private-sector growth in the country.
The development will be the only mixed-use residential property in Armenia designed to achieve internationally recognized green building certification. It is distinguished by high construction quality and strong energy efficiency performance. The project targets LEED “Gold” certification. As a result, 100 percent of the EBRD funding qualifies as Green Economy Transition (GET) financing. The complex will set a benchmark for sustainable construction in the country.
The transaction is aligned with the EBRD’s country strategy for Armenia, particularly its priority of enhancing private-sector competitiveness through capacity building, strengthened corporate transparency, and a more conducive business environment. The risk-sharing facility is one of the core financing frameworks of the EBRD’s Small Business Initiative, a program dedicated to supporting and developing the local private sector. As a popular funding instrument, it is designed to allow the EBRD to share partner banks’ exposures to local enterprises. This can be achieved through either funded or unfunded risk participation. The facility continues to strengthen local enterprise financing.
The EBRD is one of the leading institutional investors in Armenia. Since the beginning of its operations there, it has invested almost €3 billion in 243 projects. Its activities have supported private-sector development and the energy, infrastructure, telecommunications, and financial sectors. The latest transaction reinforces this long-standing engagement. It further advances sustainable urban development in Armenia.
