IFC acquires $13.5M in Team Telecom Armenia bonds

YEREVAN, December 17. /ARKA/. 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. The project—the country’s first such bonds—aims to deliver faster, higher-quality mobile and fixed internet services to thousands of homes and customers.

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 among lower income groups, with 41 percent of the poor adult population lacking quality fixed broadband services, hindering their access to vital information, economic opportunities, and essential services. Addressing these gaps requires investments estimated at up to $600 million.

The bonds, arranged by Ameriabank, set to be listed on the Armenia Stock Exchange, will finance critical expansion projects for Team Telecom Armenia, including the rollout of 4G+ and fiber-to-the-home 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. It will particularly benefit underserved rural areas, where the company’s 4G+ coverage will increase from 74 percent to 96 percent, and fiber-to-the-home penetration will expand from 14 percent to 35 percent.

Hayk Yesayan, General Director of Team Telecom Armenia, said: “This bond issuance marks a pivotal step in modernizing Armenia’s telecommunications landscape in advancing toward a responsible, sustainable digital future. It is both an investment opportunity and a means to support the country’s telecom sector development.”

Sustainability-linked bonds are funding tools tied to a company’s sustainability goals. For example, a company might commit to lowering emissions or using renewable energy and earn a reduced interest rate for meeting targets. 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 percent by October 1, 2027, and by 40 percent by November 1, 2029, versus its 2023 baseline. In addition, bond proceeds will refinance the company’s existing loans to enable it to continue 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.

“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 sustainability-linked bond issuance, it also sets a strong example for other companies, encouraging them to pursue similar financing options that align business growth with environmental and social responsibility,” said Ivana Fernandes Duarte, IFC’s Regional Manager for the South Caucasus.

The Asian Development Bank, European Bank for Reconstruction and Development Bank, and Proparco are also participating in the bond issuance.

This 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 technologies, and enhancing access to reliable infrastructure.

IFC is a leader in the telecoms, media, and technology sector in emerging markets. Learn more here.

About IFC

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.

Stay Connected with IFC on social media

About Team Telecom Armenia

Telecom Armenia OJSC (The brand – Team Telecom Armenia) is an Armenian company, with a leading position in the field of telecommunications and cutting-edge technologies in the country. Being the successor of the first telecommunication network in Armenia, the company has a 100-year history of providing services in the sphere. Due to combining rich experience and advanced technologies, Team provides reliable and innovative services to both individual and corporate customers. Telecom Armenia OJSC is the first telecommunications company in Armenia to conduct an initial public offering (IPO), becoming even more open and public. The company’s shares are listed on the Armenian Stock Exchange.

spot_img

POPULAR

Unibank Becomes Title Sponsor of Alashkert Football Club

Unibank and a four-time champion of Armenia "Alashkert" Football Club, have expanded their partnership, with the Bank becoming the club’s title sponsor.

Armenia’s sovereign rating increase should lower interest rates, but external factors are putting inflationary pressure on the country: Pashinyan

During government hour in parliament on Wednesday, Armenian Prime Minister Nikol Pashinyan raised the possibility of raising interest rates on loans.

Central Bank of Armenia raised its monetary policy rate for the first time in over three years: how it has changed since the end...

Yesterday, the Central Bank of Armenia raised its monetary policy rate for the first time in over three years. After setting the rate at 10.75% in December 2022, it remained unchanged for several months, and in June 2023, the Central Bank began a gradual rate reduction cycle.

Governor of the Central Bank of Armenia discussed economic risks and prospects and capital market development with the IMF delegation

On Wednesday, at the opening meeting with the IMF mission delegation to Armenia, led by Alexander Timan, the Governor of the Central Bank of Armenia, Martin Galstyan, discussed recent macroeconomic developments, economic prospects, and key risks.

Armbanks Weekly Digest: Key Events in the Armenian Financial Market (September 14–20)

This week, Armenia's financial agenda was shaped by changes in monetary policy direction, the cost of bank funding, inflation, and the situation in the foreign exchange market.

LATEST NEWS

spot_imgspot_imgspot_img