GTS Central Europe

Location:

Regional

Project number:

43825

Business sector:

Information and Communication Technologies

Notice type:

Private

Environmental category:

B

Approval date:

27 Mar 2012

Status:

Complete

PSD disclosed:

01 Mar 2012

Project Description

The EBRD is considering providing a long term loan of up to €50 million to GTS Central Europe (the Company), a telecoms network and data centre operator, as part of a €330 million financing arranged alongside a syndicate of international banks, in order to support the company’s investment in expanding network coverage and increasing capacity and quality of services in Hungary, Poland, Romania and Slovakia.

The project is supporting innovation activities in the telecoms sector. It will enable the Company to invest in new intelligent network applications and diversify the range of services available on a national and regional basis, helping to meet the growing demand for hosting, cloud-based services and disaster recovery.

GTS CE offers high quality broadband, alternative telecoms and data centre services to its customers on a national and cross regional basis.

Transition Impact

The EBRD transaction will support capital investment of up to €50 million for GTS CE to increase network coverage, capacity and quality as well as the range of services available on a national and regional basis.

GTS will also invest in data centres and new intelligent network applications (an essential platform for the development of the knowledge economy) thereby improving the competitiveness of clients on a national and cross-regional basis, improving efficiency, lowering transaction costs and supporting research and innovation activities as well as meeting the growing demand for hosting, cloud-based services and disaster recovery.

The Client

GTS CE is an alternative telecoms network and data centre operator with regional network infrastructure covering Hungary, Poland, Romania, Slovakia and the Czech Republic.

EBRD Finance

EBRD is providing up to €50 million debt financing as part of €330 million Senior Secured Facilities. The proposed financing comprises €290 million term loans as part of a balance sheet restructuring, which will free up internally generated cash flow for capital investment, and a €40 million Acquisition/Capex Facility.

Project Cost

€330 million.

Environmental Impact

The project was categorised “B” which means that an environmental and social analysis was required by the Bank, in accordance with the 2008 Environmental and Social Policy and Performance Requirements (PRs).

The project is unlikely to be associated with significant environmental and social risks. Environmental and social due diligence showed that the company has adequate environmental and social risk management capacities. In order to ensure that the project complies with PRs, an Environmental and Social Action Plan (ESAP) has been developed to address a corporate environmental management system, Human Resources management and contractor management. The Bank will monitor the project's environmental and social performance by reviewing an Annual Environmental and Social Report.

Technical Cooperation

None.

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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