The DVL Group of Companies, which includes Datagroup-Volia and lifecell, will receive co-financing from IFC and the EBRD in the amount of $435 million to modernize, expand, and improve the quality of telecommunications services in Ukraine. This is the largest foreign direct investment in the country since the beginning of the full-scale invasion of the russian federation.
IFC, a division of the World Bank Group, and the European Bank for Reconstruction and Development (EBRD), with the support of the European Commission (EC) and the Government of France in the form of guarantees, have announced a loan facility for the DVL Group of Companies. IFC and the EBRD are jointly providing a long-term loan of $435 million ($217.5 million each) in support of a landmark project with the participation of leading Ukrainian telecommunications companies – lifecell and Datagroup-Volia, which recently merged into the DVL Group managed by Mykhailo Shelemba.
The majority investor of the newly formed group is NJJ, a French holding company specializing in investments in the telecommunications sector, owned by well-known investor Xavier Niel.
“We are extremely happy to have reached this important milestone with the international institutions IFC and the EBRD. Without their support, our major investment in Ukraine’s telecommunications 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 demonstrates its promising investment potential,” commented Xavier Niel, Founder of Iliad Group & NJJ Holding.
Thanks to the funding provided, the combined group will improve mobile services for 10 million subscribers, while 4 million households will receive faster and more reliable access to fixed broadband Internet.
“I am grateful to IFC and the EBRD for their trust and support, and I am optimistic about this long-term partnership which provides an opportunity not only to implement a powerful investment program, including investments in network and equipment, but also to build infrastructure for fixed and mobile communications in Ukraine. Ukrainian enterprises have a huge potential for investment. It is extremely important that it continues to arrive even in these difficult times,” said Mykhailo Shelemba, CEO of Datagroup-Volia-lifecell.
Leveraging enhanced capabilities, new shareholder expertise, and support from IFC and the EBRD, the DVL Group of Companies plans to strengthen cyberdefenses, introduce more competitive products and services, and implement best practice standards in these challenging times. In addition, the project will contribute to the restoration of the telecommunications sector after direct damage of $1.9 billion and losses of $750 million as a result of russian aggression.
Olena Kosharna, Founder and Chief Executive Officer of Horizon Capital, noted, “We are grateful to IFC and the EBRD for their long-term cooperation with Horizon Capital, for supporting our funds, joint investments, and providing financing in record time for the implementation of this important agreement. The biggest winners will be Ukrainian consumers, who will have the opportunity to choose a reliable national telecommunications provider, supported by leading investors and part of a global platform with more than 100 million subscribers. This historic agreement proves that Ukraine offers attractive reliable projects, and the time for investing is right now.”
To reduce investment risks, part of the IFC loan will be covered by guarantees provided by the European Commission under the Rapid Economic Recovery Mechanism of Ukraine and the Government of France in support of the Economic Resilience Action (ERA) Program.
By improving the quality and accessibility of services for private and business customers, the DVL Group of Companies will play a key role in transforming Ukraine’s telecommunications landscape.
