IFC, EBRD finalize deal on $435 mln loan for Ukraine's Datagroup-Volio-lifecell

MOSCOW. Oct 11 (Interfax) - The International Finance Corporation (IFC), a member of the World Bank Group, has announced that it is providing a syndicated loan of $435 million jointly with the European Bank for Reconstruction and Development (EBRD) to Ukrainian telecom group Datagroup-Volia-lifecell.

The IFC and the EBRD and are jointly providing a total of $435 million in long-term debt ($217.5 million each organization), Ukrainian media said, citing the IFC press release. To mitigate investment risks, a portion of the EBRD's and IFC's loans will be covered by guarantees provided by the European Commission under the Ukraine Investment Framework and the government of France in support of the IFC's Economic Resilience Action (ERC).

"This project is the largest foreign direct investment by a major strategic investor [since the start of the crisis]. It sends a strong message to global investors about the resilience and significant potential of Ukraine's economy," IFC Managing Director Makhtar Diop was quoted in the press release as saying.

"[...] This investment - the largest in over ten years - is a testimony of our commitment to a strong and lasting economic partnership with Ukraine," Minister for Europe and Foreign Affairs Jean-Noel Barrot said.

French Minister of the Economy, Finance and Industry Antoine Armand, for his part, was cited by the press release as saying that this project is the first instance of the French government launching guarantee facility programs with both the EBRD and IFC to support Ukraine's resilience and recovery.

"We are delighted to reach this significant milestone with international institutions IFC and the EBRD. Without their support, the completion of our major investment in Ukraine's telecoms sector would not have been possible," Iliad Group and NJJ Holding founder Xavier Niel said.

Datagroup-Volia-lifecell CEO Mikhail Shelemba, for his part, thanked the EBRD and IFC "for their trust and support and look forward to this long-term partnership, which will enable a significant investment program, including investments in the network, licenses, equipment and expansion of fixed and mobile communications infrastructure in Ukraine."

The joint financing from the EBRD and IFC will deliver improved mobile connectivity to 10 million subscribers and provide faster and more reliable fixed broadband access to around 4 million homes, according to the press release.

The IFC signed the corresponding agreement on September 30. The EBRD approved the loan on July 17.