Project summary document

Project description
and objectives:

Oskar Mobil a.s., formerly Ceský Mobil, (the Borrower or Company), the third mobile operator in the Czech Republic, is raising financing from banks and, for the first time, in the Eurobond market in order

(i) to continue funding of GSM capital expenditure

(ii) to upgrade its network to EDGE technology

(iii) to fund the acquisition of the UMTS licence

(iv) to fund the incremental capital expenditure for rolling out the UMTS network

(v) to refinance existing facilities.

The project will be financed through a seven-year Eurobond of € 325 million and a five and six-year senior debt facility of € 250 million. The notes will be issued by Oskar Mobil and will rank pari passu with the senior debt facility.

Transition impact:

Through this transaction, the Bank will assist Oskar Mobil in raising sufficient long-term financing to enable it to compete effectively and on an equal footing with the two other leading mobile operators. This funding will make it possible for Oskar Mobil to expand and upgrade its network, develop new telephony products based on new technology and to offer new services to its subscribers.

The transition impact of the proposed transaction is based on:

• Developing access for private non-financial Czech companies to the international capital markets via Eurobonds.
  
• Greater competition and development of new products in the innovative mobile sector: ?eský Mobil’s development of EDGE and UMTS products and services will strengthen the competition in this new data services market segment.

The client:

Oskar Mobil is 99.9% owned by TIW Czech N.V, a Dutch holding company, which is itself 27.1% owned by Telesystem International Wireless Inc. (TIW). The other shareholders of TIW Czech NV are JP Morgan (27.6%), EMP (11.0%), Advent (10.4%), ABN Amro (7.0%), EBRD (5.8%), PartCom (4.6%), Mediatel Capital (4.3%) and Parnib (2.2%).

TIW, a Canadian company, is a leading cellular operator in Central and Eastern Europe with 5.8 million subscribers as of June 30, 2004. TIW is listed on the Toronto Stock Exchange and NASDAQ and its market capitalisation at 1 September 2004 stood at US$ 1.35 billion. TIW’s main shareholders are Telesystem (15.2%), JP Morgan (13.9%), Hutchinson (9.2%), EMP (8.7%), the remainder being a free float of 53%.

EBRD finance:

The Bank will participate for € 25 million in the 7- year, 4-year no call, Eurobond issue in the total amount of € 325 million.

Total project cost:

Total project cost for Q4 2004 to 2006 is € 760 million, split between capital expenditure of € 310 million and refinancing of € 450 million.

Environmental impact:

The project was classified C/0 and there are unlikely to be any significant environmental issues associated with this operation.  Environmental due diligence carried out in 2001 as part of the Bank's original investment, along with annual monitoring reports, suggest that there are no environmental issues of concern and the Company is in compliance with all applicable regulatory requirements.  A further recent update of the Company’s corporate environmental performance together with the 2003 Annual Environmental Report has been received, confirming that Oskar Mobil applies high international EHS standards throughout its operations.

Technical
cooperation:

None.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

Oskar Mobil,
Vinohradská 167,
100 Praha 10,
Czech Republic

Contact person: Jacques Lacroix

Tel: +1 514 673 8475

E-mail: jlacroix@tiw.ca

EBRD contact:

Jiri Choteborsky, Operation Leader: choteboj@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com