The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), a member of the World Bank Group, have announced a joint financing package totaling $435 million for the newly combined Ukrainian telecommunications group Datagroup-Volia-Lifecell. Each organization will provide $217.5 million to support the company's development plans. The announcement was made on the EBRD's official website.
Largest Foreign Investment Since Conflict Escalation
This financing represents the largest single foreign direct investment by a major strategic investor in Ukraine since the onset of the full-scale conflict. The funds are expected to significantly bolster the country's telecommunications sector.
Enhancing Connectivity for Millions
The investment will enable the combined group to:
- Improve mobile communication services for approximately 10 million subscribers.
- Provide faster and more reliable fixed internet access to about 4 million households.
These enhancements aim to modernize Ukraine's digital infrastructure, facilitating better connectivity and communication nationwide.
Risk Mitigation Through Guarantees
To mitigate investment risks, a portion of the loans from the EBRD and IFC will be secured by guarantees from the French government and the European Union under the Ukrainian Investment Programme. This arrangement underscores international confidence in Ukraine's economic resilience and growth potential.
Background on the Merger
In early September, NJJ Holding, an investment company owned by French billionaire Xavier Niel, completed the acquisition of Datagroup-Volia and Lifecell. The merger of these telecommunications entities aims to create a more robust and competitive company capable of delivering advanced services to Ukrainian consumers.
