news - FMO supports telecom sector in Georgia

FMO has signed a USD 25 million EBRD B-loan out of a USD 100 million total senior debt package on behalf of Magticom in Georgia. Magticom is the leading telecom operator in Georgia which owns and operates mobile wireless, fixed wireless and fixed wired telephone networks. The company is known for its technology-driven and high quality services which resulted in the market leadership for many years.

In order to further diversify its business model and become a leading quad-play operator in the region (offering voice, mobile, IPTV and internet services), Magticom has taken a strategic decision to enter Internet Service Provider (ISP) business. With the proceeds of the loan, Magticom will acquire the corporate and retail fiber broadband assets of Caucasus Online and subsequently expand the coverage into 9 regions in Georgia. The transaction will provide increased access to high quality internet and IPTV services initially in 9 regions of western Georgia (due to limitations in infrastructure) where the internet penetration ranges between 21-39 percent (with the exception of Kutaisi region).

FMO finds it important to play a role in the increased connectivity of Georgia. “We are happy with our partnership with the EBRD and aim to play a supportive role for increased connectivity between people in Georgia. Stronger connections and improved telecom infrastructure will enable the economy to flourish,” mentioned Frederik Kummersteiner, Director Infrastructure, Manufacturing & Services at FMO. Bruno Balvanera, EBRD Director for the Caucasus, Moldova and Belarus, said “Georgia is a growing economy where rural areas need greater connectivity, and this project is yet another example of the EBRD’s efforts to support economic inclusion in the country”.