On October 10, the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) approved a joint financing package of $435 mln to support the merger of Lifecell LLC and Datagroup-Volia. The financing is backed by guarantees from the European Commission (EC) and the Government of France.

The investment will be used to support the rollout of the unified telecoms platform, licenses and equipment needed to expand fixed and mobile infrastructure in Ukraine.

“We expect that this investment will help provide up to 10 million consumers with improved mobile communications and about 4 million households with faster and more reliable access to broadband. The confirmation of financing demonstrates that international financial institutions and private investors in France believe in Ukraine. This is a powerful signal to other investors and a direct call to invest in Ukraine without waiting for the end of the war,” said Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine.

The co-financing decision will also support the unified telecoms group in improving the resilience of its telephone networks and protecting against cyber threats. It will allow the introduction of more competitive products and services, contributing to the recovery of the telecoms sector, which has suffered direct losses of $1.9 bln since the start of the full-scale invasion.

Ukraine is also cooperating directly with the Government of the French Republic in other areas, including an intergovernmental agreement on the allocation of EUR 200 mln in grants for the reconstruction and restoration of critical infrastructure and support for Ukraine’s energy sector.

Additionally, work is underway to expand the mandate of the Agence Française de Développement (AFD) in Ukraine to provide financial support in the form of loans, grants or guarantees to public and private enterprises, banking institutions and legal entities located in Ukraine.

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During the URC2024 Ukraine Recovery Conference in Berlin, IFC and EBRD announced their participation in the deal between Datagroup-Volia and Lifecell. NJJ Capital, a French investment company founded by Xavier Niel, led the acquisition of Datagroup-Volia and Lifecell LLC together with Horizon Capital, a private equity fund. The acquisition was completed on September 9 this year.