ArmInfo. The International Finance Corporation (IFC) is anchoring a landmark $75 million sustainability-linked bond issuance by Team Telecom Armenia with a $13.5 million participation to boost digital infrastructure in Armenia, as stated in IFC press release. Armenia.
It should be noted that a the Asian Development Bank, the European Bank for Reconstruction and Development (EBRD) and the Asian Development Bank (ADB) and PROPARCO (AFD) are also participating in the bond issuance. The statement noted: "Armenia faces a number of infrastructure and connectivity challenges, including slower mobile and fixed broadband speeds compared to regional averages. Connectivity is particularly limited in rural areas and low-income groups, with 41% of the poor adult population lacking quality fixed broadband service, hindering their access to vital information, economic opportunities, and essential services. Addressing these gaps requires investments estimated at up to $600 million."
"Green" Telecom Armenia bonds, arranged by Ameriabank, set be listed on the Armenia Stock Exchange. will finance critical expansion projects for Team Telecom Armenia, including the roolout of 4G+ and fiber-to-the-home (FTTH) networks. The company plans to extend coverage to an additional 300,000 mobile data customers and connect 90,000 more homes to high-speed Internet by 2029. The project will increase 4G+ coverage in low-income rural areas from the current 74% to 96%, and FTTH will expand from 14% to 35%.
Team Telecom Armenia CEO Hayk Yesayan said: "This bond issuance marks a pivotal step in modernizing Armenia's telecommunications landscape in advancing toward a responsible and sustainable digital future. This is both an investment opportunity and a means to support the development of the country's telecommunications sector." The CRSD bonds are financing tools tied to a company's sustainability goals. For example, a company might commit to lowering emissions or using renewable energy. If these targets are missed, the interest rate may be increased. Under the bond's innovative sustainability structure, Team Telecom Armenia will be incentivized to reduce its greenhouse gas emissions by 20% by October 1, 2027, and by 40% by November 1, 2029, compared to its 2023 baseline. In addition, bond proceeds will refinance the company's existing loans to enable its investment program. IFC will also support the company's efforts to reduce gender gaps through a gender assessment, develop a gender equality policy, and implement workshops to increase its ratio of female managers.
Ivana Fernandez Duarte, IFC Regional Director for the South Caucasus, said: "IFC's investment backs Team Telecom Armenia's efforts to bring faster, better internet services to homes and communities across the country. As the country's first CRSD bond, it also sets a strong example for other companies, encouraging them to pursue financial options that align business growth with environmental and social responsibility." This CRSD bond issuance marks another milestone in IFC's partnership with Team Telecom Armenia, which began in 2022, when IFC provided a loan to support the company's capital investment plan. IFC's investment is aligned with the World Bank Group's strategic priorities in Armenia, including supporting export-enabling sectors, such as information and communications technology, and enhancing access to reliable infrastructure.
