The EBRD will finance 50% of the merger between Ukrainian telecom operators.

The EBRD will provide $217.5M, half of the $435M allocated jointly with the IFC, to finance the creation of a combined company, Datagroup-Volya and Lifecell, following the completion of the purchase agreement for Turkcell’s Ukrainian assets by French NJJ Capital.

“Financing will enable capital expenditures related to modernization and renewal of mobile and fixed networks of the two companies, improvement of network stability, service quality, coverage, and energy efficiency,” NJJ said in a statement.

This loan will support NJJ Capital and Horizon Capital’s plans to create a leading operator of fixed and mobile communications in Ukraine through the merger of Lifecell Group and Datagroup-Volya.

The funds will be received by a newly registered company in Ukraine (NewCo), which will be indirectly owned by NJJ (85%), Horizon Capital (10%), and the general director of Datagroup Mykhailo Shelemba (5%). The newly created company is expected to employ about 5,000 workers.