The DVL Group, which includes Datagroup-Volia and lifecell, will receive a $435 million joint financing from IFC and the EBRD 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 Russian invasion.
Support from the European Commission
IFC, a unit of the World Bank Group, and the European Bank for Reconstruction and Development (EBRD), with the support of the European Commission (EC) and the French government in the form of guarantees, have announced an investment program for the DVL Group. IFC and EBRD are jointly providing a $435 million long-term loan ($217.5 million each) to support a landmark project involving Ukraine’s leading telecommunications companies, lifecell and Datagroup-Volia, which recently merged to form DVL Group under the leadership of Mykhailo Shelemba.
The majority investor in the newly formed group is NJJ, a French holding company specializing in investments in the telecommunications sector owned by renowned investor Xavier Niel.
“We are extremely happy to have reached this important milestone with the international institutions IFC and 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 the promising investment potential in Ukraine,” says Xavier Niel, founder of Iliad Group & NJJ Holding.
Improving mobile communications and broadband access
With the financing, the combined group will improve mobile services for 10 million subscribers and provide 4 million households with faster and more reliable access to fixed broadband.
“I am grateful to IFC and the EBRD for their trust and support and am optimistic about this long-term partnership, which will enable us not only to implement a strong investment program, including investments in network and equipment, but also to build the infrastructure for fixed and mobile communications in Ukraine. Ukrainian enterprises have a huge potential for investment. It is extremely important that they continue to come even in these difficult times,” said Mykhailo Shelemba, CEO of Datagroup-Volia-lifecell.
Using the expanded capabilities, professional experience of the new shareholders and support from IFC and EBRD, DVL Group plans to strengthen its defense against cyber threats, introduce more competitive products and services, and implement best practice standards in this challenging time.
In addition, the project will contribute to the recovery of the telecommunications sector after the direct damage of $1.9 billion and $750 million in losses caused by Russian aggression.
Consumers will benefit
The biggest winner is Ukrainian consumers, who will have the opportunity to choose a reliable national telecommunications provider backed by leading investors and part of a global platform with more than 100 million subscribers. This historic transaction proves that Ukraine offers attractive, reliable projects, and the time to invest is now,” said Elena Koszarny, Founder and CEO of Horizon Capital.
She thanked IFC and the EBRD for their long-term cooperation with Horizon Capital, for supporting the funds, co-investing and providing financing in record time to realize this important deal.
To mitigate investment risks, a portion of the IFC loan will be covered by guarantees provided by the European Commission under the Ukraine’s Early Recovery Facility and by the French government in support of the IFC’s Economic Resilience Action (ERA).
By improving the quality and accessibility of services for private and business customers, DVL Group plans to play a key role in transforming Ukraine’s telecommunications landscape.
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