Business Roundup

ProCredit Bank opens in Armenia

The first ProCredit Bank in Armenia opened in Yerevan on February 5.

It will focus on giving loans to small and medium business enterprises. “We will be a bank around the corner that offers the best service to all its customers. We welcome everyone to start saving with us or to get a loan for developing their business,” executive director of ProCredit Bank, Bertolt Hertzfeldt said.

The bank will offer business loans starting from 100 USD for small entrepreneurs and banking services to private individuals such as saving accounts without a minimum deposit amount.

The shareholders of ProCredit Bank are ProCredit Holding AG with a two-thirds’ stake, KfW with 16.67 percent of shares, and EBRD with 16.67 percent of shares. By the end of 2008 ProCredit Bank Armenia plans to develop six branches in three regions of Armenia—four in Yerevan, one in Vanadzor and one in Artashat.

ProCredit Bank Georgia, formerly Microfinance Bank, began operating in 1999 and changed its name to ProCredit in 2003.



Hill International to manage Sakanela development

Hill International, a construction consultancy firm, announced on February 4 it has been awarded a contract by Central Plaza LLC to provide project management on the design and construction of Sakanela complex in Tbilisi.

Sakanela will comprise 311 residential apartments and 120 000 square meters of commercial space. It will be located in Tbilisi city center between Rose Revolution Square and the Mtkvari River. Construction is expected to begin in August 2008 and is due for completion by August 2010.

“We have had tremendous success delivering this type of project and look forward to helping our client realize their project goals,” Raouf S. Ghali, president of Hill’s Project Management Group said.



EBRD loan for Tbilisi Hyatt

The European Bank for Reconstruction and Development (EBRD) will loan USD 110.7 million to the Georgian developer International Estate Investments for the construction of a five-star Hyatt hotel in Tbilisi, the bank said.

The USD 200 million Park Hyatt Tbilisi will be built on the Mtkhvari River.



Italian company Ferrero to increase investment in Georgia

Italian confectionary company Ferrero plans to double investment in its nut business in Georgia, taking it up to EUR 20 million.

“We plan to purchase another 2000 hectares of land in western Georgia and establish hazelnut plantations there,” said Mauricio Corteze, a company representative.

In May 2007 the company bought 1 235 hectares of land in the Khobi and Zugdidi districts of Samegrelo region for USD 1.25 million.



Galt & Taggart Capital acquires 19.96 percent shares of Telavi Wine Cellar

Galt & Taggart Capital, the merchant banking arm of Bank of Georgia, has bought a 19.96 percent equity interest in the Telavi Wine Cellar company.

Telavi Wine Cellar’s market share is 20 percent in domestic sales of wine and ten percent in exports. The company’s winery is located in Kurdghelauri village, outside Telavi.

“We believe that this acquisition is a major step towards the consolidation of the expanding bottled wine industry in Georgia,” Eli Enoch, CEO of Galt & Taggart Capital, said.