The newly merged Datagroup-Volia-lifecell signed a deal with the European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC) to receive $435 million in long-term loan funding ($217.5 million per organization), EBRD reported on Oct.10.
It will support “a landmark project” to enhance protection against cybersecurity threats, introduce more competitive products and services, and implement best practice standards at a critical time.
JOIN US ON TELEGRAM
Follow our coverage of the war on the @Kyivpost_official.
“Through this high-impact transaction, the merged group will deliver improved mobile connectivity to 10 million subscribers and provide faster and more reliable fixed broadband access to around four million homes,” the press release said.
Volia television has close to 300,000 clients, according to research by Detektor Media. Lifecell meanwhile reached 9.9 million users in 2023 according to Liga.net, citing the company’s end-of-year report.
Source: EBRD press service.
NJJ, a French telecoms investment holding company owned by investor Xavier Niel, leads the new group with a majority stake. NJJ is partnering with Horizon Capital, a leading private equity firm, and Mykhaylo Shelemba, former CEO of Datagroup-Volia and now CEO of the new group.
The EBRD project investing in DataGroup will also support the telecoms sector’s recovery from the estimated $1.9 billion in direct damages and $750 million in losses incurred since the start of Russia’s full-scale invasion.
Oil Prices Increase After Russia’s Sunday Attack on Ukraine
To mitigate investment risks, a portion of the EBRD and IFC syndicated loan will be covered by guarantees provided by the government of France and the EU under the Ukraine Investment Framework.
“The recovery and reconstruction of Ukraine will require the mobilization of both public and private actors investing in Ukraine’s future. This investment – the largest in over ten years – is a testimony of our commitment to a strong and lasting economic partnership with Ukraine,” EBRD quoted Jean-Noël Barrot, minister for Europe and foreign affairs, in the press release.
Since February 2022, the EBRD has deployed €5 billion in Ukraine, focusing on supporting energy security, vital infrastructure, food security, trade and the private sector, alongside key policy reforms. The EBRD’s board of governors has approved a capital increase of €4 billion to support further investment at this level in wartime.
You can also highlight the text and press Ctrl + Enter
