DLF - Sun Communications (debt)

Location:

Moldova

Project number:

37261

Business sector:

Information and Communication Technologies

Notice type:

Private

Environmental category:

C

Status:

Completed

PSD disclosed:

20 Dec 2006

Project Description

The proposed project will assist in consolidating the competition in the Moldovan communications market by supporting the leading cable TV operator, SUN Communications, in its ongoing acquisition and modernisation programme in Chisinau and in the main cities of the country. Modernisation will include upgrading the cable TV networks for two-way operation at up to 860MHz, building of optical fibre transmission links, etc.

Transition Impact

The project supports a privately owned company operating in a sector dominated by the state-owned incumbent. The project is likely to contribute to an increased role of private enterprises in provision of communications services in Moldova.

The project will also help enhance competition in a sector dominated by a single strong player by assisting a private operator gain foothold by increasing its market share. This will lead to increased penetration rates in cable TV and Internet services and a better quality of service.

The development of alternative telecoms operators, such as SUN, offering packages that include TV programmes, the Internet and voice telephony will have a major demonstration effect and will likely generate further consolidation and restructuring.

 

The Client

SUN Communications is the largest cable TV operator in Moldova and a residential and corporate Internet service provider with a client base in excess of 65,000 subscribers. SUN operates a modern 860MHz hybrid fibre –coaxial network which covers 83% of Chisinau and a MMDS wireless network which practically secures full coverage of the city. SUN also operates a cable TV network in Balti.

EBRD Finance

The Bank will invest USD 4 million in equity and USD 4 Million in long term debt along the founder and shareholder of the Company

Project Cost

USD 15.5 Million

Environmental Impact

Screened C/0. The operation is unlikely to involve any significant environmental issues. The Company are currently completing the Bank’s corporate environmental due diligence questionnaire for Telecom and Media projects. The Project will be required to comply with national and EU environmental, health, safety and labour standards and requirements and reporting to the Bank on environmental, health, safety and labour protection issues.

Technical Cooperation

None.

Company Contact

Mr John Maxemchuk, CEO

jmaxemchuk@suntv.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

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