Telecom Armenia

completed

 The proposed investment consists of an A Loan of up to US$ 20 million to Telecom Armenia, a telecom operator, that is 100% owned by TEAM LLC (“the Sponsor”). TEAM LLC was established in April 2020 and in November 2020, acquired VEON Armenia LLC from VEON Ltd. (a regional telecom operator with operations across Eastern Europe and the former CIS). Since the acquisition, VEON Armenia LLC has been renamed Telecom Armenia CJSC (“Telecom Armenia” or “the Company”), operating using the Beeline brand (https://www.beeline.am/en).The company is planning a capex program, which extends over an eight-year period, to upgrade and expand the telecom access network both in the wireless and fixed broadband networks and is upgrading the core infrastructure network and the IT and business solutions systems. IFC’s investment proceeds will be used to refinance a recent acquisition debt and to contribute to the 2022 capex program, which will improve the coverage and quality of the fixed and wireless networks (the “Project”). The company has existing assets, developed before the acquisition of VEON Armenia LLC, located within important areas for biodiversity. The capex program IFC will partially finance does not include works within these areas.The company is currently the second largest Mobile Network Operator (25% market share) and second largest Internet Service Provider (39% market share) in Armenia.  It owns and operates its own telecommunication system which includes approximately 6,374 km of underground optic-fiber (backbone and access) network, 16,900 km underground telephone ducts and 846 physical Radio Access Network (RAN) sites (macro base stations, towers, masts and monopoles – 86% of RAN sites are rented). The company operates 78 small retail stores (most of which are leased) and has office space and warehousing facilities in Yerevan.