EBRD invests in first sustainability-linked bond in Armenia

• EBRD invests US$ 13.5 million in Team Telecom Armenia’s US$ 75 million bond issuance
• The investment supports the development of local capital markets in Armenia
• Proceeds will enhance the company’s growth plans, tied to ambitious environmental targets 

The European Bank for Reconstruction and Development, as an anchor investor, is participating in Team Telecom Armenia’s US$ 75 million (€71.6 million) sustainability-linked bond with an investment of US$ 13.5 million (€12.9 million). 

The International Financial Corporation, Asian Development Bank and Proparco are also investing in the bond issuance, which is listed on the Armenian Stock Exchange. 

By investing in Team Telecom Armenia’s inaugural bond issuance, the EBRD is helping the company to upgrade its infrastructure and expand its network, including its 4G+ coverage and fibre-to-home penetration rates. Proceeds will also go towards improving the company’s cybersecurity resilience and meeting its commitment to enhance gender equality. 

More broadly, the project will contribute to the development of Armenia’s telecommunication network infrastructure while supporting its resilience and sustainability and furthering the progress of Armenia’s economy towards a sustainable digital future.

It is the second largest issuance on the Armenian capital markets and the bond not only fosters capital market development but also commits Team Telecom Armenia to ambitious emissions reduction targets, including a 40 per cent reduction in greenhouse gas emissions by the end of 2029. 

Hayk Yesayan, General Director of Team Telecom Armenia, highlighted the transformative potential of this initiative. “This bond issuance marks a pivotal step in modernising Armenia’s telecommunications landscape in advancing towards a responsible, sustainable digital future,” he explained. “It is both an investment opportunity and a means to support the country’s telecom sector development.”

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. We are delighted to introduce a new instrument to Armenia’s capital markets while continuing our support to Team Telecom Armenia on its growth path.”

This investment represents the successful continuation of EBRD’s collaboration with Team Telecom, which started in 2022 when the Bank signed a senior loan agreement to finance the company’s investment programme.

Team Telecom Armenia is the leading fixed-line operator in Armenia and the country’s second largest mobile operator.

To date, the EBRD has invested more than €2.5 billion in Armenia through 221 projects.