ArmInfo.The European Bank for Reconstruction and Development (EBRD) as an anchor investor, is participating in Team Telecom Armenia's (trademarked as Team Telecom Armenia), $75 million (EUR 71.6 million) sustainability linked bond (SLB) with an investment of US $13.5 million (EUR 12.9 million) .
As noted in the EBRD report, the International Finance Corporation (IFC, which also invested $13.5 million - ed.), Asian Development Bank (ADB) and PROPARCO, the financial division of the French Development Agency (AFD), are also investing in the bond issuance.
In its announcement, the EBRD explains that by investing in these bonds, it is helping the company to upgrade its infrastructure and expand its network, including 4G+ coverage and fibre-to-home penetration rates. Proceeds will also go towards improving the company's cybersecurity resilience and meeting its commitments to enhance gender equality. More broadly, the project will contribute to the development of Armenia's telecommunication network infrastructure while supporting its resilience and stability and furthering the progress of Armenia's economy towards a sustainable digital future.
Team Telecom Armenia CEO Hayk Yesayan highlighted the transformative potential of this initiative. "This bond issuance marks a pivotal step in the modernizing Armenia's telecommunications landscape in advancing towards a responsible, sustainable digital future," he explained, adding that it was both an investment opportunity and a means to support the development of the country's telecom sector. Holger Muent, EBRD Head of Telecommunications, Media and Technology, said: "This project will support the modernisation and expansion of Team Telecom Armenia's fixed and mobile telecommunication networks. It is the successful continuation of our relationship with Telecom Armenia, and we are proud to contribute to the sustainability and resilience of Armenia's digital infrastructure."
George Akhalkatsi, EBRD Head of Armenia, said: "The EBRD's investment in Team Telecom Armenia's bond issuance supports two of our key strategic goals: to strengthen local capital markets and support the green transition of Armenia's economy. This will be the first sustainability-linked bond in Armenia, fully in line with the principles of the International Capital Market Association's principles. We are delighted to introduce a new instrument to Armenia's capital markets, while continuing out support to Team Telecom Armenia on its growth path." The statement mentions that this investment represents the successful continuation of EBRD's collaboration with Team Telecom, which started in 2022, when the Bank signed an a senior loan agreement to finance the company's investment programs.
