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Czech cable TV to expand network
Thousands of Czech homes will soon be able to receive a wide selection of cable TV programmes due to a US$24 million financing package by the European Bank for Reconstruction and Development (EBRD). Local and international satellite channels plus box office movies, a children's channel and a General Entertainment channel, dubbed into the local language, will be available on a subscription basis in certain areas of Prague.
Installing the cabling, developing and operating the multi-channel cable TV systems is Kabel Net Holding a.s., formed in 1993 and already awarded broadcast licences by the Government. The EBRD is taking a 14.8% equity stake in the company and providing a guarantee/loan facility for US$ 20 million, of which US$ 13.5 million has been syndicated to Creditanstalt-Bankverein, ING Bank and De Nationale Investeringsbank (NIB).
Ron Freeman, First Vice President of the EBRD, said "The uniqueness of this financing structure allows the company to draw on local currency funding via ING and Creditanstalt. The company is further supported by the loan should it be unable to secure local financing under the guarantee."
The Managing Director for the Czech company, Mario Dieckmann, said he was very satisfied with the financing structure and commented that "the support from the EBRD and other banking institutions reflects the general positive investment climate in the Czech Republic." He added that "this multi-channel television project will be built over the next several years and will demonstrate our long term commitment in this country."
The other major shareholders are United International Holdings, Inc., a US company, which holds 66.7% of the company, and the New Europe East Investment Fund (NEEIF), managed by the Capital Group, holding 18.5%. The total project investment is US$ 62 million.
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