PROJECT VLTAVA

Location:

Czech Republic

Project number:

35521

Business sector:

Information and Communication Technologies

Notice type:

Private

Environmental category:

C

Approval date:

05 Oct 2004

Status:

Completed

PSD disclosed:

08 Oct 2004

Project Description

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.

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.

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
 

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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