New Delhi: The Asian Development Bank (ADB) announced an $18.5 million investment in Team Telecom Armenia’s inaugural sustainability-linked bond (SLB). The investment will support the company’s expansion of digital infrastructure in Armenia, aligning with the country’s climate, information and communications technology, and economic goals.
The bond issuance, with a target of up to $75 million, will fund upgrades to mobile and broadband infrastructure, aiming to improve internet speed, coverage, and reliability, particularly in underserved areas. The initiative also reflects Armenia’s commitment to reducing greenhouse gas emissions by 40% by 2030, an ADB press release stated.
This investment exemplifies ADB’s mission to develop sustainable capital markets across Asia and the Pacific, including the Caucasus, said ADB Director General for Private Sector Operations Suzanne Gaboury. The partnership with Team Telecom Armenia showcases how capital markets can improve digital infrastructure, competitiveness, and environmental resilience.
This pioneering SLB, the first of its kind in Armenia, will be listed on the Armenia Stock Exchange. It sets a precedent for corporate environmental, social, and governance (ESG) bond issuances in the country. Sustainalytics, a provider of second-party opinions on sustainable development, has confirmed the bond’s alignment with Sustainable Development Goals. Notably, the issuance includes targets to reduce greenhouse gas emissions by 40% by 2029 and 20% by 2027. This will be achieved through projects focusing on energy efficiency, renewable energy promotion, and emissions reduction within Team Telecom Armenia’s operations.
Hayk Yesayan, CEO of Team Telecom Armenia, highlighted the importance of ADB’s support in modernizing Armenia’s telecom infrastructure and transitioning towards a sustainable digital future. The bond will enable the company to enhance service quality, improve network reliability, and expand access, crucial for Armenia’s growth and resilience in the digital economy, he said.
Team Telecom Armenia, an Armenian company, leads the country’s telecommunications and information technology sectors. As the successor to Armenia’s first telecom network, the company has a century of experience in providing services in the field. Team offers mobile, fixed internet, digital TV, and mobile and fixed telephony services to individual and corporate customers across Armenia, the ADB press release iterated.
The proceeds will be used to modernize the national network with 4G and 5G equipment, construct new base stations, upgrade fixed-line systems, and introduce gender-inclusive services addressing the specific needs of female users in Armenia. The company has also committed to enhancing gender balance in the workplace and implementing policies to increase women’s representation.