The country’s telecoms infrastructure has suffered $1.9 billion-worth of damage since Russia’s invasion
The European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC) have each agreed a $217.5 million, long-term debt facility for Xavier Niel’s recently-created converged operator in Ukraine. The European Union and French Government are both guarantors for part of the loan.
The French telecoms magnet expressed his desire to be a connectivity champion in the country in spring. In April, Niel’s investment vehicle, NJJ Holding, acquired the fixed broadband and pay-TV business Datagroup-Volia from its CEO, Mykhaylo Shelemba, who held an almost 4% stake and a fund managed by US private equity company Horizon Capital. It has about 4 million customers.
In September, a consortium led by Niel’s NJJ Holding acquired the mobile operator Lifecell from Turkcell. It is is the third largest mobile operator in Ukraine with 10 million mobile subscribers.
EBRD noted the funds would aid the operator in “enhancing the resilience of the phone network and improving digital connectivity across Ukraine”.
It also said the operator would improve cybersecurity and “introduce more competitive products and services”.
EBRD estimated there had been $1.9 billion-worth of direct damage suffered by Ukraine’s telecoms sector since the start of conflict with Russia in 2022.
IFC’s Managing Director, Makhtar Diop described the financing as “the largest foreign direct investment by a major strategic investor since Russia’s invasion”, adding “it sends a strong message to global investors about the resilience and significant potential of Ukraine’s economy”.
Niel, who owns NJJ Holding and European operator Iliad Group, said the agreements were a “significant milestone”, adding “without their support, the completion of our major investment in Ukraine’s telecoms sector would not have been possible”.
“Our long-term financial partnership with the EBRD and IFC underscores our shared commitment to Ukraine’s economic growth and highlights the country’s promising investment potential