Trivon - Equity

Location:

Russia

Project number:

43017

Business sector:

Information and Communication Technologies

Notice type:

Private

Environmental category:

B

Approval date:

01 Sep 2011

Status:

Disbursing

PSD disclosed:

04 Jul 2012

Project Description

The EBRD is considering investing in Trivon AG (“Trivon” or the “Company”), an internet broadband provider operating in Russia under the Virgin Connect brand. The financing will allow the Company to expand the coverage of its internet broadband services in the Russian regions through the acquisition of broadband internet operators as well as the organic growth of the Company’s networks.

Transition Impact

The project will address the low broadband penetration in Russia and in particular in the regions outside of Moscow and St Petersburg which today are still underdeveloped in terms of broadband internet services. The Company’s expansion in sparsely penetrated regions would contribute to increasing broadband penetration in such regions as well as to driving prices down over time.

At the same time, the involvement of Virgin Group, with their standards of excellent corporate governance and business practices, applied to Trivon and the acquisition targets, will have a positive impact on practices in Russia.

The Client

Trivon AG is an internet broadband services provider incorporated in Switzerland and operating in Russia. Trivon operates a combination of fixed and wireless broadband networks for which it owns licenses in 33 Russian regions. Trivon has been operating under the Virgin Connect brand after securing a brand license agreement with the Virgin Group for Russia and the CIS region.

EBRD Finance

Up to US$ 30.5 million equity in Trivon AG.

Project Cost

Up to US$ 106 million equity round.

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 any significant environmental and social issues. The Environmental and Social Due Diligence has been carried out through a review of the completed Environmental and Social Questionnaire and Human Resource Due Diligence Questionnaire. The company is required to adopt the Bank's Sub-sectoral Environmental and Social Guidelines for the Telecommunication Sector in addition to carrying out the project in accordance with relevant Performance Requirements.

Technical Cooperation

Noen.

Company Contact

Markus Mueller, Chief Executive Officer Trivon AG
Chamerstrasse 50, 6300 Zug, Switzerland

Telephone: +41 41 710 68 08
Fax: +41 41 710 68 09
E-mail: info@trivon.com
www.trivon.com

 

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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