Investment opportunities

Solar PV

USD 100-150 mln

Under the project Government is planning to commission first solar PVPP with the installed capacity of 40-50 MW. Armenia has a significant solar energy potential. The average annual amount of solar energy flow per square meter of horizontal surface is about 1720 kWh (the average European 1000 kWh). One fourth of the country’s territory is endowed with solar energy resources of 1850 kWh/m2. Additionally, wide variety of siliceous raw material from various sources and morphology is also available in the country. This will enable to organize production of PV modules locally, which will decrease the overall level of investments. Particularly, the project has envisaged organizing production of UMG silicon and poly-silicon, blending process, production of ingots, production of wafers and solar cells, and finally production of PV modules. Currently the feasibility study for project implementation is conducted.

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Under the project Government is planning to commission first solar PVPP with the installed capacity of 40-50 MW. Armenia has a significant solar energy potential.

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The Southern Armenia Railway Project

USD 3 bln

The Southern Armenia Railway Project is a major infrastructure project which aims at connecting borders with Iran with the existing railway network of Armenia. The Southern Armenia Railway is set to be a 304.7km long electrified single track railway, which will connect Gavar, near Lake Sevan, to the southern border of Armenia by Meghri and will be integrated with the existing central railway system of the Republic of Armenia. Considering that Armenian network is already linked to that of Georgia, this will create an opportunity for organization of passenger and cargo transportation along the routes of Silk Road – starting from China, passing through Iran and reaching EU countries. It will become the shortest transport route between the Persian Gulf and the Black Sea ports, Central and East Asia, including China and Europe, significantly saving transportation costs and time.

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The Southern Armenia Railway Project is a major infrastructure project which aims at connecting borders with Iran with the existing railway network of Armenia.

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North-South Road Corridor Investment Program

USD 160-200 mln

North-South Road Corridor Investment Program is an infrastructure project with strategic importance for the Republic of Armenia. The project’s objective is to connect the southern point of the country which is bordering with Iran with its northern point, bordering with Georgia, by means of 556 km first category high-speed highway with a speed limit of 100-110 km/hour. This highway will be linked to existing Georgian road network and allow passenger and cargo transportation up to Georgian Black Sea ports and further to Europe. This highly important strategic road, which is constructed in accordance with best European standards, will decrease the transit time on the territory of Armenia by 4-4.5 hours. The preliminary estimated cost of construction works of the North-South Road Corridor Investment Program is about USD 2-3 billion. Main part of funding is provided by the Asian Development Bank and European Investment Bank. Currently funding is required for the construction of two tunnels: Bargushat tunnel (approx. 8.6 km length) and Kajaran tunnel (approx. 4.7 km length). Both tunnels will be constructed under PPP arrangements and will be toll roads. Within the project the state will finance VAT, costs of land acquisition and resettlement. North-South Road Corridor Investment Program

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North-South Road Corridor Investment Program is an infrastructure project with strategic importance for the Republic of Armenia.

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Geoteam CJSC

USD 400 mln

Geoteam CJSC is an Armenian mineral exploration and development company, which is a 100% owned subsidiary of Lydian International Limited (TSX:LYD). It was incorporated in 2005 and after an extensive campaign of geological explorations in Armenia it discovered what is now considered its flagship project, the Amulsar mountain. Amulsar is a new gold discovery, the first for over 20 years in Armenia. Lydian’s proposed Amulsar Gold Project comprises the extraction, via blasting and excavation, of ore from three open pits on Amulsar Mountain; crushing of the ore and transportation via conveyor to a heap leach facility where gold and silver are leached into solution using sodium cyanide; and extraction of the precious metals from the solution at an adsorption-desorption recovery plant. Barren rock from the pits will be stored in an engineered barren rock storage facility. The Project will have a life of approximately 13 years, including two years of construction.

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Geoteam CJSC is an Armenian mineral exploration and development company, which is a 100% owned subsidiary of Lydian International Limited (TSX:LYD).

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Spayka Greenhouse

USD 60-120 mln

Established since 2001 in Yerevan as an international transport company Spayka has specialized in processing and trading of agricultural products exporting to EU and CIS markets. Today Spayka has its own fleet of more than 200 Volvo trucks, with more than 10.000 m2 of A Class refrigerated warehouses in Yerevan, Ararat and Tavush regions, factory of juices and preserves with Italian production lines, factory of packaging materials for agricultural products. Spayka manages also 30 hectares radish greenhouse built in Ararat region. Company carries about 70% of fresh agricultural exports from RA. Spayka is planning to construct and operate a 100 ha greenhouse complex equipped with modern technology to ensure high yields, minimum cost and maximum quality using natural advantages of local climate and labor. The main export market will be the Russian Federation. Current sales contracts with retail chains in Russia allow covering about 5% of the tomato and 3% of the pepper demand of the Russian market with this project. Greenhouse complex will be constructed during 2017-2018 and come in full operation in November 2018.

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Established since 2001 in Yerevan as an international transport company Spayka has specialized in processing and trading of agricultural products exporting to EU and CIS markets. Today Spayka has its own fleet of more than 200 Volvo trucks, with more than 10.000 m2 of A Class refrigerated warehouses in Yerevan, Ararat and Tavush regions, factory of juices and preserves with Italian production lines, factory of packaging materials for agricultural products. Spayka manages also 30 hectares radish greenhouse built in Ararat region.

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Data Center

USD 20-50 mln

Data Safe is a project which implies creation of a multi-functional Tier3 data center in the Republic of Armenia. The data center will be carrier neutral and will be in partnership with global market leaders in cloud solutions for business and the state entities. Data safe will target the wider regional markets of Iran and Middle East and the states of Eurasian Economic Union (Russia, Kazakhstan, Belarus, Armenia and Kirgizstan) thus becoming a significant platform for western companies in this region. The project is scalable and the initial investment in the main infrastructure (including power supply, cooling etc.) will imply future growth with the HW and SW only. At the first stage the company will invest USD20mln from which USD4mln as shareholder equity and the rest from external investors.

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Data Safe is a project which implies creation of a multi-functional Tier3 data center in the Republic of Armenia. The data center will be carrier neutral and will be in partnership with global market leaders in cloud solutions for business and the state entities.

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IT sector in Armenia

The Information Technology (IT) industry is one of the fastest growing industries of the Armenian economy. In 2000, the Government of Armenia recognized the sector as the primary constituent of the country’s economic progress. Over the last decade, the IT sector proved its growing importance for the country by making a huge contribution to economic growth, creation of value added jobs, and improvement of the country' s image. The technical workforce of Armenia creates a favorable investment climate for large ICT companies and multinationals: it is calculated that the average annual productivity produced by these competitive specialists for their companies amounts to USD 37,000 (as of 2012). Armenian ICT companies specialize in embedded software development and semiconductor design, customized software and outsourcing, financial software, multimedia, web design, information systems and system integration. Armenia has recorded significant achievements particularly in the area of semiconductor design and creation of related objects of Intellectual Property. Some of the success stories in Armenia IT sector include internationally recognized Armenian start-ups such as PicsArt, CodeFights, Shadowmatic, Betconstracts, Zangi, SoloLearn, Monitis, Teamable, News Deeply and Joomag. Apart from being a favorable IT hub for Armenian start-ups Armenia also prides itself in hosting some of the largest multinationals in the global IT industry. In particular IT giants such as Microsoft, Oracle, Cisco, Ericsson, Huawei, D-Link, VMware, Mentor Graphics, National Instruments, Synergy International Systems and Synopsys have subsidiaries, R&D offices and laboratories in Armenia.

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The Information Technology (IT) industry is one of the fastest growing industries of the Armenian economy. In 2000, the Government of Armenia recognized the sector as the primary constituent of the country’s economic progress.

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Financial Sector
Financial Sector
What we offer:

Armenia offers a robust growth environment along with long lasting macroeconomic stability. Price stability and strong growth have increased household wealth and investment opportunities. In this context, a stable and modern financial sector open to diversification and innovation supported by a comprehensive development policy aimed at integrating Armenia in the world economy and transforming it into an attractive hub for investment.

Over the years, Armenia has developed one of the most stable and modern financial sectors in the region. Its current success is due to a regulatory and supervisory framework that effectively safeguards financial stability, fosters sustainable growth of the financial sector and ensures a level playing field for market participants.

Armenia’s state of the art financial stability framework is based on core BASEL principles and on strong safeguard mechanisms against adverse effects of external shocks, which effectively shielded Armenia’s financial sector from the spillovers of the 2008 crisis. Armenia’s financial sector is also characterized by a strong culture of investor protection as well as rigorous AML/CTF policies.

Finally, Armenia offers very strong and tangible commitment to future positive changes and reforms that includes providing strong growth opportunities and investor protection. Along with modern legislation private pension industry reaching assets under management 30 percent of GDP by 2030 and managing savings of almost all employed household in Armenia will be co-funding potential projects and thus guaranteeing sound entry and exit of foreign investors. Engagement of Armenia’s large, well-educated and wealthy Diaspora, as well as strong private and public developmental partners imposing discipline and strong reputation is another guarantee of commitment.

Private Contractual Funds

Armenia has recently adopted a modern and flexible investment fund regulation, looking to render Armenia and the Eurasian region more accessible to fund managers and foreign investors. Armenia now introduces the Private Contractual Fund (PCF). The PCF is an extremely flexible and tax efficient investment fund. There are no restrictions on investment policies, fund shares can be denominated in any reserve currency and taxation is at 0.01% of NAV. PCFs also benefit from a streamlined e-registration process, which has been created thanks to the cooperation between the Central Bank of Armenia and NASDAQOMX Armenia. Fund managers can now register their fund through NASDAQOMX’s web portal and can submit their documents in English. Set-up takes as little as 15 days and is cost-effective.

Securitization and Financial Laboratory

The recent innovative securitization project, recognized by USAID as the most innovative deal of 2015 has shown that Armenia has one of the best infrastructures for testing and realizing new ideas within the financial sector. This project included such innovative features as dual currency and multi –issuer bond issuance. This suggests that investors have the possibility to innovate or transfer knowledge and engineer finance in Armenia using Armenia as a financial laboratory and exporting their ideas to the region.

Today, there are also many possibilities for classic securitization in Armenia. Firstly, significant growth in our loan stock over the next 20 years will put loans at 75% of GDP. Secondly, the mortgage market in Armenia is steadily gaining pace and by 2037 mortgage market penetration will reach 40% of livable dwellings. The real estate market constitutes yet another potential driver for securitization. This market is currently valued at 5 – 6 Billion and investors have the potential to capitalize on these numbers.

Life Insurance

Life insurance is as of yet an unsaturated sector in the financial market that is open for foreign investment. The gradual rise of household debt and the fact that large number of Armenian families depend on one or few income earners create a high demand for life insurance products and thus, the perfect conditions for introducing life insurance in the financial market. The second major factor supporting the introduction of life insurance is the recent pension reform. By 2037 the pension scheme will have 550000 participants, and the first payout will be of 0.5 Billion US dollars, which will respectfully constitute the initial client base and capital base for life insurance. Pension payouts will potentially be funneled into Life insurance products, creating the groundwork and facilitating the introduction of Life insurance in Armenia.

Low Hanging Opportunities

Recent reforms have also facilitated access to the Armenian market for foreign investors. Namely, Armenia has been linked to Clearstream, improving customers’ access to the Caucasus region. Investors can use this domestic link to access Armenian government bonds and supranational bonds. The link also facilitates custody and asset servicing with the Central Depository of Armenia.

Furthermore, Armenia has undertaken a legislative reform by which internationally recognized ISDA Master Agreements shall become fully enforceable under its jurisdiction. In cooperation with IMF and EBRD, the legislative package was created in line with best international practice.

In light of the above mentioned the CBA has recently adopted a policy of encouraging long term funding via lowering reserve requirements for certain assets. Today the reserve requirements for long term funding are twice as low as those for short term funding and are at 0% for certain types of assets.

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Armenia offers a robust growth environment along with long lasting macroeconomic stability. Price stability and strong growth have increased household wealth and investment opportunities. In this context, a stable and modern financial sector open to diversification and innovation supported by a comprehensive development policy aimed at integrating Armenia in the world economy and transforming it into an attractive hub for investment.

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Select success stories

There are many investment success stories to be told in Armenia and the lot below is by no means comprehensive.

Armenia International Airport

In 2001, a 30-year concession agreement for the management of operations at the airport was signed with Armenia International Airports CJSC, owned by Argentine company Corporation America, which is in turn owned by Armenian Argentine businessman Eduardo Eurnekian. As part of that agreement, Armenia International Airports CJSC renovated and expanded the airport in order for it to serve tourism and commerce between Asia and Europe.

http://www.zvartnots.aero/ read more

In 2001, a 30-year concession agreement for the management of operations at the airport was signed with Armenia International Airports CJSC, owned by Argentine company Corporation America, which is in turn owned by Armenian Argentine businessman Eduardo Eurnekian.

http://www.zvartnots.aero/ read more
Contour Global

ContourGlobal is an international power-generation company with approximately 4000 MW in operations or under construction in 20 countries on four continents. Currently it operates a series of three individual power plants with a total electrical capacity of 405 MW on the Vorotan River in southern Armenia.

http://www.contourglobal.com/press/1981 read more

ContourGlobal is an international power-generation company with approximately 4000 MW in operations or under construction in 20 countries on four continents.

http://www.contourglobal.com/press/1981 read more
Azad pharma

AZAD, a privately held company, was established in 2000 to exclusively handle Cilag’s global sales and marketing activities of Active Pharmaceutical Ingredients (APIs). Soon after, AZAD began to diversify its field of expertise in order to broaden its offerings and extend its presence in the healthcare industry. AZAD has a broad reach with offices in Canada, Switzerland, Armenia, and China, and has immediate access to all potential clients in the Americas, Europe, Asia, Middle East, and CIS region. With high investment in personnel, AZAD also assures effective marketing gathering activities that translate into successful projects. In Armenia it has its own labs and is considering carrying out development works on APIs for third parties.

http://www.azad.ch/ read more

AZAD, a privately held company, was established in 2000 to exclusively handle Cilag’s global sales and marketing activities of Active Pharmaceutical Ingredients (APIs).

http://www.azad.ch/ read more
Tufenkian

Tufenkian Heritage Hotels are Armenia's first luxury boutique hotel collection. Founded by James Tufenkian, these exquisitely designed hotels extend a warm welcome and introduce business travelers, adventurous honeymooners, active seniors, families and exotic world travelers to Armenian heritage - rich with tradition, architecture, art, historical monuments, picturesque landscapes and authentic cuisine.

http://www.tufenkianheritage.com/ read more

Tufenkian Heritage Hotels are Armenia's first luxury boutique hotel collection.

http://www.tufenkianheritage.com/ read more
Synopsys Armenia

Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications. Synopsys Armenia closed joint stock company (CJSC) provides R&D and product support in EDA, design for manufacturing (DFM) and the development of semiconductor intellectual property (IP). Synopsys Armenia has been investing in local IT education since 2004 to help provide Armenia with highly qualified IT specialists.

http://www.synopsys.com/company/locations/armenia/pages/default.aspx read more

Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications.

http://www.synopsys.com/company/locations/armenia/pages/default.aspx read more
Pernod Ricard Armenia

Pernod Ricard’s history in Armenia dates back to 1998-1999 when it acquired Yerevan Brandy Company, the producer of the renowned ARARAT brandies. This marked the begging of Pernod Ricard’s story in Armenia. The Group did not intend to confine to the achievements already gained. Realizing the growth potential of the Armenian market and aiming at separating production from sales, the Group made a decision to set up a distribution subsidiary in Armenia, which would concentrate on marketing and distribution of Group brands in the republic, enabling Yerevan Brandy Company to focus on its primary activity – production of ARARAT brandies.   

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Apart from enhancing the efficiency of the mentioned activities, this step aimed at further increasing the sales of Group’s products on Armenian market. Shortly after making this decision, Pernod Ricard opened its doors in Armenia and was officially established in September 2008. Products represented by the Group in Armenian include well-known brands such as Chivas, Jameson, Absolute, Havana Club to mention but a few. Despite the relatively short period of operation in Armenia, the company has contributed to the sustainable development of Pernod Ricard Group and played a serious role in the development of the Armenian economy, occupying a distinct place in the social and cultural life of the country.

https://pernod-ricard.am/index.php read more

Pernod Ricard’s history in Armenia dates back to 1998-1999 when it acquired Yerevan Brandy Company, the producer of the renowned ARARAT brandies.

https://pernod-ricard.am/index.php read more

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