Free Style issues Armenia’s first corporate bonds in the fashion retail sector, placed by Cube Invest

Free Style has issued corporate bonds, becoming the first company in Armenia to raise financing through bonds in the fashion retail sector. The placement of the bonds is being carried out by Cube Invest.

The bond issuance enables investors to participate in the financing of Free Style. The company is an official retail partner of a number of international fashion brands, including Levi’s, Puma, New Balance, Boggi Milano, Lee Wrangler, Jack & Jones, Cole Haan, as well as the brand portfolio of the Bestseller Group.

According to Mikayel Margaryan, Chief Executive Officer of Cube Invest, the bond issuance represents an important development for the investment market. “Our cooperation with Free Style allows investors to take part in a long-term financing process. The issuance of bonds also serves as a tool to enhance transparency and accountability. In the case of Free Style, we see an established business model and a clear development direction, and we believe this issuance may be of interest both for the company’s further growth and for investors,” he said.

The bonds have a coupon payment frequency of three months, with a coupon rate of 13 per cent. The maturity period is 36 months, with redemption scheduled for 24 December 2028. The total issuance volume amounts to AMD 1.5 billion. The nominal value of each bond is AMD 100,000, with a total of 15,000 bonds issued.

Free Style’s Director, Arman Harutyunyan, said the issuance is aligned with the company’s strategic plans. “Working with Cube Invest, we view the bond issuance as a financing instrument that supports the company’s medium-term development and the expansion of financial tools within the fashion retail sector,” he said.

An additional benefit is offered to purchasers of Free Style bonds. Alongside making an investment, bondholders are granted the opportunity to access the full range of products available across all Free Style stores through a preferential discount scheme.

Under the terms of the offer, a 30 per cent discount applies to the purchase of bonds worth AMD 3 million, a 40 per cent discount to purchases of AMD 8 million and above, and a 50 per cent discount to purchases of AMD 15 million and above. The offer is valid for three months from the date of bond purchase.

The discount scheme applies to the following brands, including Puma, Levi’s, Cole Haan, Jack & Jones, Lee Wrangler, Boggi Milano, New Balance, Vero Moda, Pepe Jeans, among others.

Free Style’s business development strategy and sustainable growth planning were carried out by Parvanyan Consulting, with the bond issuance forming part of that strategic framework.

Free Style operates in Armenia, Georgia and Uzbekistan, combining international fashion expertise with in-depth knowledge of local markets. The company’s activities include men’s classic and sportswear, as well as contemporary women’s fashion.

Cube Invest CJSC was established in 2017. In February of the same year, the company was registered with the Central Bank of Armenia and licensed to provide investment services. As of 2024, the company’s authorised capital amounted to AMD 720 million.

Founded in 2016, Free Style Group represents a portfolio of international fashion brands across the Armenian, Georgian and Uzbek markets. The company operates in the retail sector, developing both physical and online sales formats.