The EBRD is supporting the knowledge economy and the development of the information and communication technology sector in Bosnia and Herzegovina with a €25 million loan to Telemach, one of the leading cable TV operators in the country.
The cable TV market in Bosnia and Herzegovina is currently very fragmented, with around 40 licensed operators servicing various regions of the country. Telemach, part of the leading platform of pay TV businesses in the Adria region, majority owned by Mid Europa Partners, currently operates in Sarajevo and Mostar, cities in the central and southern part of the country, as well as in their surroundings.
The proceeds of the EBRD loan will enable Telemach to continue to acquire cable TV operators in the country, as well as to invest in further upgrades of its network.
The project will support Telemach’s drive to bring modern, high quality services and to become a leading national player in the cable TV and broadband internet sector.
The financing extended to Telemach is structured under the EBRD’s A/B loan scheme, with €12.5 million for the Bank’s account and the remaining €12.5 million syndicated to Raiffeisen Bank International.
“Supporting local private companies is one of the EBRD’s strategic priorities in Bosnia and Herzegovina. Through this investment in Telemach we are contributing to the development of the information and communication technology sector in the country and helping to bring high-quality cable TV and broadband internet services to people across the country,” said Libor Krkoska, Head of the EBRD office in Bosnia and Herzegovina.
“This financing will further increase Telemach’s ability to further develop the company and continue the roll-out of the latest technologies and products to our subscribers in Bosnia and Herzegovina,” said Dragan Solak, Chairman of the Board of Telemach.
“Through Telemach’s entry into Bosnia in 2010, we have brought cutting-edge cable television entertainment, internet and telephony services to its subscribers. This facility allows Telemach to build on these milestones, and make its services even more broadly available to consumers across Bosnia and Herzegovina,” said Andrej Babache, Associate Director of Mid Europa Partners.
Since the beginning of its operations in Bosnia and Herzegovina, the EBRD has committed over €1.3 billion in various sectors of the country’s economy, of which over €500 million was in the private sector.
Overall the Bank has invested directly over €2.8 billion in approximately 135 projects in the information and communication technology sector in countries across central and eastern Europe and the Commonwealth of Independent States.
Mid Europa Partners is a leading, independent private equity investment firm focused on central and eastern Europe, with approximately €3.2 billion of funds raised and managed since inception.