The Asian Development Bank (ADB) has invested $18.5 million in Team Telecom Armenia’s first sustainability-linked bond (SLB). ADB’s investment in the up to $75 million issuance supports the company’s plans to expand its digital infrastructure and advance Armenia’s climate, information and communications technology, and economic goals.
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Team Telecom Armenia’s bond issuance will fund critical upgrades to mobile and broadband infrastructure across Armenia, increasing internet speeds, coverage, and reliability, particularly in underserved urban and rural areas. This financial instrument also aligns with Armenia’s commitment to cut greenhouse gas emissions by 40% by 2030.
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“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. “Our partnership with Team Telecom Armenia demonstrates how capital markets can be harnessed to drive significant improvements in digital infrastructure, competitiveness and environmental resilience”.
Team Telecom Armenia’s groundbreaking bond is the first of its kind in Armenia and will be listed on the Armenia Stock Exchange, setting a precedent for corporate environmental, social, and governance (ESG) bond issuances in the country. Sustainalytics provided the Sustainable Development Goal-aligned second-party opinion for the issuance which includes sustainability performance targets focusing on a 40% reduction in greenhouse gas emissions by 2029, with an interim target of 20% reduction by 2027 by funding projects to improve energy efficiency, promote renewable energy, and reduce emissions across Team Telecom Armenia’s operations.
“ADB’s support is pivotal in our journey to modernize Armenia’s telecom infrastructure and transition toward a sustainable and inclusive digital future,” said Team Telecom Armenia’s CEO Hayk Yesayan. “This bond enables us to elevate service quality, enhance network reliability and expand access, which is essential for Armenia’s growth and resilience in the digital economy.”
The bond proceeds will fund Team Telecom Armenia’s efforts to modernize the national network with advanced 4G and 5G equipment, construct new base stations, upgrade fixed-line systems and introduce a gender-inclusive approach in services responding to the unique needs of female users in Armenia. The company has also committed to enhance its workplace gender balance and implement policies to increase women’s representation.
Through ADB’s anchor investment, this bond offering is expected to attract additional local and international investments, helping to establish Armenia’s capital market as a platform for future green, social and sustainability-linked bond issuances.
Telecom Armenia OJSC (brand: Team Telecom Armenia) is an Armenian company that holds a leading position in the country’s telecommunications and information technology sectors. Being the successor of the first telecom network in Armenia, the company has more than 100 years of experience in providing services in the field. Team provides mobile and fixed internet, digital television, mobile and fixed telephony services to both individual and corporate subscribers across Armenia.
About ADB
The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development. Established in 1966, it is owned by 69 members—49 from the region.
