TA Bond 2024

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The proposed IFC investment consists of a subscription of up to US$ 15 million into a US$ 80 million, five-year sustainability-linked bond (the Project). The issuer is Team Telecom Armenia OJSC (the Company), an existing IFC client since 2022 (Project #45195; https://disclosures.ifc.org/project-detail/ESRS/45195/telecom-armenia). The E&S performance of the project in portfolio is satisfactory.  The Company provides 2G (GSM), 3G (UMTS), and 4G (LTE) mobile services, fixed-line telephony, digital television services (IPTV and OTT), as well as fixed internet access via FTTH, FTTB, VDSL, and ADSL technologies. The Company owns an underground pipeline and aerial pole network infrastructure, consisting of around 2,722 km of pipes and 60,342 aerial poles. In addition, the company operates 1,036 mobile stations (including 886 macro, 67 micro, and 83 pico stations) and 78 sales and service centers throughout Armenia (most of which are leased), and has office space and warehousing facilities in Yerevan.Proceeds of the proposed bond issuance will be used to (i) refinance the company’s current International Financing Institution loans and (ii) finance the company’s capital expenditures (capex) program. The capex program is expected mostly to involve mobile core network upgrade and expansion (including 250 new mobile stations), IP network upgrade, fix line modernization, and Electric Vehicle (EV) Charging Stations expansion.