Duration of assignment: 18 months
Narrative description of Project:
The European Bank for Reconstruction and Development has launched the Capital Market Support (CMS) Programme in Armenia to address two critical barriers preventing Armenian companies from accessing local capital markets: limited knowledge and expertise in capital market financing and the high initial costs associated with issuing equity and debt instruments. This comprehensive programme aims to bridge these gaps through a combination of capacity-building initiatives, advisory services, and grant co-financing mechanisms, ultimately fostering an environment where Armenian companies can confidently tap into capital markets.
As part of the CMS Programme, a Pipeline Assessment Report will be prepared to evaluate approximately 15 to 20 potential issuers across diverse sectors. These assessments will analyze financial health, market position, and financing needs while identifying the most suitable financial instruments for market entry. Interviews with issuers and investors will complement the assessment to ensure a thorough understanding of market demands and investment potential.
The Programme Design and Structuring phase will create a robust framework for implementation, defining eligibility criteria, selection processes, and internal procedures for a dedicated selection committee. This phase will also include designing a co-financing grant mechanism to cover key issuance-related costs, such as legal, listing, and prospectus fees. A dedicated Programme website will serve as the central hub for applications and information sharing. Additionally, a targeted Marketing Plan will outline promotional activities, including social media campaigns, public relations initiatives, and collaboration with local business associations, culminating in an official Programme launch event.
During the Implementation Phase, shortlisted corporate candidates will undergo in-depth diagnostics to assess corporate governance practices, financial stability, reporting standards, and overall readiness for capital market participation. Tailored advisory services will be provided to enhance strategic growth plans, corporate governance structures, and financial reporting capabilities. Selected companies will also benefit from workshops and bootcamps focusing on financial management, supply chain efficiency, human resources, branding, and investor relations. The grant co-financing mechanism will be executed during this phase, ensuring transparent and efficient distribution of financial support to successful participants. The implementation will conclude with a Programme closing event, celebrating the achievements and presenting successful case studies.
The Capacity-Building and Awareness Activities component will expand the Programme’s impact beyond the selected corporates. A series of training workshops and educational events will target a wider audience, including regulators, financial intermediaries, and institutional stakeholders. These activities will address key topics such as financial reporting, governance practices, and the prerequisites for public offerings. Additionally, awareness campaigns will highlight the strategic advantages of capital market financing, while specialized events will cater to the needs of financial institutions and regulatory bodies.
Finally, the Marketing and Communication Strategy will ensure sustained visibility and engagement throughout the Programme. A mix of digital campaigns, media outreach, and collaborations with local associations will drive awareness and participation. The Programme website will serve as a dynamic platform for updates, applications, and resource sharing, keeping all stakeholders informed and engaged.
The CMS Programme represents a significant step forward in strengthening Armenia’s capital markets, improving corporate access to diverse financing instruments, and fostering a culture of transparency, governance, and investor confidence. By addressing structural barriers and building institutional capacity, the Programme aims to create lasting economic impact and sustainable financial development in Armenia.