“Alternative Investment Tools in Armenia” – IC Armenia Event

On July 1, an event titled “Alternative Investment Tools in Armenia” was held at the Yerevan Hall of the Holiday Inn Yerevan Hotel.

The legislative amendments related to convertible debt, jointly developed by the EBRD Investment Council of Armenia expert team and the Ministry of Economy of Armenia, were adopted by the National Assembly in the second and final reading. Convertible debt agreements are internationally recognized investment instruments used to finance startups, early-stage companies, or other businesses. Along with SAFE agreements, they are widely applied for investments in technology companies by venture capital funds and other investors. During the event, detailed presentations were made on the legislative packages concerning Convertible Debt, SAFE agreements, and options.

The legislative packages were jointly developed by the Ministry of Economy of Armenia and the EBRD Investment Council of Armenia with the support of the UK Government’s Good Governance Fund.

The event brought together representatives of the financial sector, members of the SME Development Council, as well as officials from various public institutions.

In her opening remarks, Deputy Minister of Economy Lilya Sirekanyan stated: “Today’s topic is highly relevant for our country, which has chosen the path of deep economic transformation and consistent improvement of the investment environment. I would like to reaffirm that the Government of Armenia is determined to ensure the qualitative development of the investment environment. We are ready to continue our cooperation with international partners, the private sector, and the expert community to make Armenia’s capital market more attractive, competitive, and dynamic.”

Anna Khachatryan, EBRD representative, emphasized the importance of the reforms and new opportunities: “Until now, our legal framework lacked sufficient clarity and mechanisms for the effective use of convertible debt. The proposed reforms will modernize the legislation, align it with international best practices, and open new opportunities for business financing without affecting long-term stability. These reforms are not only about capital but also about trust, opportunities, and creating an environment where good ideas can flourish.”

Paul Morris, Chargé d’Affaires (a.i.) of the British Embassy Yerevan said: “The UK, together with our partners, is supporting Armenia to introduce alternative investment tools that make its financial system stronger and help the economy grow. Developing an options market, improving convertible note rules and updating LLC laws gives businesses more flexible ways to raise money. These changes reduce barriers for entrepreneurs and investors, speed up deals and make it easier to build and grow businesses here."

The opening speeches concluded with remarks by the Head of the EBRD Investment Council of Armenia Hovsep Patvakanyan, who underlined: “The expert team of Investment Council of Armenia closely monitors the implemented reforms and conducts continuous assessments to understand their impact and reception. Within a few months, 15-16 different transactions have already been carried out under the SAFE agreement framework, attracting $800,000 in investments for small companies. I am confident that the introduction of the new tool—convertible debt—will become an additional incentive for attracting significant investment volumes into Armenian companies.”

The welcoming speeches were followed by a keynote presentation delivered by Hayk Malkhasyan, Senior Legal Adviser of the EBRD Investment Council of Armenia, who presented the opportunities for applying investment instruments in Armenia, particularly Convertible Debt, SAFE agreements, and options.

The keynote was followed by a panel discussion, where experts shared their insights on the prospects of using alternative investment instruments by both Armenian and foreign investors. Speakers of the panel discussion included:

• Aram Khachatryan, Lawyer, Enterprise Incubator Foundation

• Ruben Osipyan, Director, Science and Technology Angels Network (STAN)

• Lilit Karapetyan, Partner and Lawyer, Concern Dialog Law Firm

• Karen Vardanyan, General Partner, Formula VC Venture Fund

• Hayk Malkhasyan, Senior Legal Adviser, EBRD Investment Council of Armenia

The panel discussion was moderated by Hovsep Patvakanyan, Head of the EBRD Investment Council of Armenia.

During the discussion, participants had the opportunity to ask questions to the speakers, leading to an engaging and productive dialogue.

The Investment Council of Armenia operates under the EBRD with the support of the UK Government’s Good Governance Fund.