EBRD invests $13.5 million  in Team Telecom Armenia`s $75 million  bond issuance 

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.