Team Holding announces launch of bond placement

ArmInfo.  The companies within Team Holding have achieved their goals and demonstrated sustainable growth over the past five years. In addition to the  telecommunications sector, they operate in a number of areas,  including alternative energy, e-commerce, logistics, hospitality, and  others. Today, the Group comprises over 10 companies that require  additional resources for development. This need prompted Team Holding  to enter the Armenian corporate bond market.

During a press conference held at Openhaus Community, Team Group  co-founder Hayk Yesayan stated that the bond issue would be a  long-term initiative, as business expansion always requires new  financial infusions. "We are unique because our Group includes  companies operating outside of Armenia, and I attach great importance  to this. Our investors make indirect investments in other economies,  which ensures diversification. This diversification allows us to be a  more stable and sustainable group of companies, while simultaneously  implementing innovative approaches and operating in a more  structured, new style, compared to companies operating exclusively in  Armenia," the co-founder of Team Group of Companies emphasized.

It was noted that as part of the first tranche, the company is  offering USD- and AMD-denominated bonds with the following terms: USD  bonds - total volume of USD 9 million, nominal value of USD 100 per  bond, coupon rate of 9%, and a maturity of 48 months; AMD bonds -  total volume of AMD 1.4 billion, nominal value of AMD 100,000 per  bond, coupon rate of 12%, and a maturity of 48 months. The placement  of the first tranche will run from December 3, 2025, to March 3,  2026. Notably, this is the first major placement aimed primarily at  attracting local investors and, to a greater extent, individuals.

In response to a question from an ArmInfo correspondent, Hayk Yesayan  stated that the funds raised will be directed toward the  implementation of key strategic initiatives, including infrastructure  development, innovative technology deployment, and improved financing  efficiency of ongoing programs. The focus on alternative energy,  specifically the construction of solar power plants, was explained by  his participation in a large-scale project involving  Firebird,  NVIDIA, and the Armenian government worth $500 million (the most  powerful supercomputer data center in the region based on artificial  intelligence solutions will be built in Armenia - Ed.). "You know  that our Group is carrying out a significant amount of work on the  Firebird project." "We expect energy consumption to reach 100  megawatts. Therefore, we are investing in alternative energy. As a  result, energy consumption in the country will increase by 10%, which  could have both a negative and positive impact on the market.  Therefore, we want to have alternative energy sources," he said.

Freedom Broker Armenia CEO Hovak Hovakimyan explained the decision to  underwrite the bonds of a major company like Team Holding by saying,  "Team Holding is viewed as a global partner with significant economic  impact in Armenia. We believe this placement will provide a  significant boost to the development of our country's capital  market," he emphasized, noting that there is already strong demand  for Team Holding bonds.

The head of Freedom Broker Armenia explained that when they received  their brokerage license in 2021, they established a comprehensive  infrastructure in Armenia to facilitate investor entry into the  securities market. "And within three years, we've developed an  ecosystem that allows investor  to participate in a placement in just  five minutes. Our infrastructure allows us to serve not just a few  thousand clients, but several hundred thousand," Hovakimyan noted.   He also expressed hope that these bonds, due to their yield, will be  of interest not only to the local market but also to international  investors. The bond purchase rules, an electronic version of the  prospectus, and public offering announcements can be found at the  provided link  https://ffin.am/upload/iblock/ff3/ev0ebhp9sandqh6vaa1w2e1lkjinc0eo.pdf.

All terms of the issue and the offered bonds, as well as associated risks, are presented in the program prospectus.