Magticom Telecomms (EBRD-48493)

Countries
  • Georgia
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 6, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
MagtiCom
The holder of the loan, grant, or other investment.
Sectors
  • Communications
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Aug 10, 2017

Disclosed by Bank Jun 2, 2016


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Project Description
This project finances MagtiCom, a leading telecoms operator in Georgia, to finance acquisition of retail assets of the second biggest Internet Service Provider in Georgia, Caucasus Online. The assets include all the infrastructure, equipment and network necessary to provide internet, telephony and IPTV services to end customers.
Investment Description
  • European Bank for Reconstruction and Development (EBRD)
This project is a US$ 100 million senior EBRD A/B Loan to MagtiCom consisting of an A loan of US$ 75 million for EBRD's own account, and a B loan of 25 million syndicated to international lenders. MagtiCom is a leading telecoms operator in Georgia providing a range of services from mobile, fixed wireless, broadband to Direct-To-Home ("DTH") satellite pay TV services. As of December 2015, the Company had 1.9 million mobile subscribers and 39 per cent subscriber market share in the mobile segment. Since its inception in 1996, MagtiCom has played a major role in development of networks such as GPRS in 2001, 3G network in 2006, satellite broadcasting in 2012, and 4G/LTE network in 2015. MagtiCom also offers fixed wireless services using its CDMA network. In January 2012, the Company launched first DTH services in the country.
Contact Information
Archil Gomiashvili archil.gomiashvili@magticom.ge +995 322 17 16 30 +995 322 17 11 71 www.magticom.ge 7 A. Politkovskaya St., 0186 Tbilisi, Georgia ACCOUNTABILITY MECHANISM OF EBRD The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD’s own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.