EBRD provides $65 mln loan in hryvna-equivalent to support Datagroup-Volia merger
The European Bank for Reconstruction and Development (EBRD) is providing a local currency loan equivalent to $65 million to Datagroup, which is majority owned by a fund managed by Horizon Capital, the bank and the company said in joint press release issued on Monday.
This will primarily finance the acquisition of Volia Group, the provider of telecom and content services (earlier Volia-Cable).
"We are delighted to announce our cooperation with the EBRD resulting in the provision of $65million in financing. These funds will be invested in the business to support growth and development – the acquisition of Volia as well as full-scale network modernisation. This financing supports our development plans, ensuring our network is the most modern in the Ukrainian telecommunications market, bringing quality of services to a whole new level and ensuring we surpass customer expectations as their reliable partner. We believe this is just the beginning of a long-term collaboration with the EBRD and look forward to many opportunities and large-scale projects ahead," Datagroup Chief Executive Officer and shareholder Mykhailo Shelemba said.
Matteo Patrone, EBRD Managing Director, Eastern Europe and the Caucasus, said that soon Ukrainian consumers will reap the benefits of Datagroup and Volia joining forces.
"This merger will create a platform of sufficient scale to attract substantial capital investments to modernise Ukraine's last-mile and national fibre infrastructure. The EBRD is a valued partner of Horizon Capital and its portfolio companies, providing expansion loans to increase production capacity, acquisition financing to grow businesses and fund commitments to attract private capital to the region. The success of Datagroup and Volia will serve to promote Ukraine’s investment attractiveness and ultimately bring more foreign direct investment to the country," Horizon Capital's Founding Partner and Chief Executive Officer Lenna Koszarny said.
Under the cooperation with the EBRD, Datagroup is also committing to expand its internship programme and provide greater training and employment opportunities for young women and men.