Ukraine’s telecommunications sector is set for a significant upgrade, supported by the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), which is part of the World Bank Group.
The initiative, backed by the European Commission (EC) and the French government, will fund a modernization program that aims to expand and enhance telecom services across the country.
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The EBRD and the IFC are collaborating to provide USD 435 million in long-term financing for a major project involving two prominent Ukrainian telecom companies—lifecell and Datagroup-Volia—which have recently merged to create Datagroup-Volia-lifecell. This investment aims to bolster the resilience of the nation’s phone network and enhance digital connectivity throughout Ukraine.
The new telecom group, Datagroup-Volia-lifecell, is led by NJJ, a French telecom investment holding company owned by investor Xavier Niel, who holds the majority stake.
NJJ is joined by Horizon Capital, a prominent private equity firm in emerging Europe, and Mykhaylo Shelemba, the former CEO of Datagroup-Volia, who now serves as the CEO of the newly formed group.
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The project intends to send a strong, positive message to the investment community. This high-impact initiative aims to enhance mobile connectivity for 10 million subscribers and deliver faster, more reliable fixed broadband access to approximately 4 million households across the country.
The merged telecom group will strengthen cybersecurity defenses, introduce more competitive products and services, and adopt best-practice standards during this crucial period. The project aims to aid the sector’s recovery from an estimated USD 1.9 billion in direct damages and USD 750 million in losses caused by Russia’s invasion.
Loans will be partially backed by guarantees provided through the Ukraine Investment Framework, supported by the French government and the European Union, to minimize investment risks.