MAGTICOM LTD.
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
MGT is the leading telecom operator in Georgia which provides mobile, broadband, fixed-line and satellite-TV services.
What is our funding objective?
Proceeds of the loan will be used to acquire the corporate and retail fiber broadband assets of Caucasus Online which will facilitate Magticom to expand the internet coverage initially into 9 regions in Georgia.
Why do we fund this investment?
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, penetration of 60 percent). Magticom is one of the Georgian blue chip companies (turnover: USD 120 mln, EBITDA margin: 50 percent) with further expansion plans in the country. The company is known for its technology-driven and high quality services which resulted in the market leadership for many years. Contrary to other telecom companies in FMO portfolio, MGT owns both the telecom towers and the full operations, which offer substantial business opportunities in the future. Furthermore, the proposed transaction fits with IMS strategy due to investment in telecom sector of an LMIC country, substantial development impact through increased access to internet services, additionality through long-term financing in Georgia, and partnership with EBRD.
More investments
| Date | Total FMO financing |
|---|---|
| 10/3/2019 | USD 10.00 MLN |
- Website customer/investment
- http://www.magticom.ge
- Region
- Europe & Central Asia
- Country
- Georgia
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 7/15/2016
- End date
- 7/11/2019
- Total FMO financing
- USD 25.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B