The European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC) signed-off a total of $435 million in long-term debt for Xavier Niel’s recently-created converged operator in Ukraine.

Each finance organisation will contribute half of the sum, with guarantees for a proportion of the loan amount covered by the European Union and French Government.

The funding has been put in place to support the entity formed from mobile operator Lifecell and fixed player Datagroup-Volia, which were bought in separate transactions earlier this year by a consortium led by Niel’s NJJ Holding.

EBRD noted the funds would aid the operator in “enhancing the resilience of the phone network and improving digital connectivity across Ukraine”.

The bank noted with the new access to the finance, the operator would be able to “deliver improved mobile connectivity to 10 million subscribers and provide faster and more reliable fixed broadband access to around 4 million homes”.

It also backed the operator to bolster cybersecurity defences and “introduce more competitive products and services”.

EBRD estimated there had been $1.9 billion-worth of direct damage suffered by Ukraine’s telecoms sector since the start of conflict with Russia in 2022.

IFC MD Makhtar Diop described the financing as “the largest foreign direct investment by a major strategic investor since Russia’s invasion”, adding “it sends a strong message to global investors about the resilience and significant potential of Ukraine’s economy”.

Niel, who owns NJJ Holding and European operator Iliad Group, said the agreements were a “significant milestone”, noting “without their support, the completion of our major investment in Ukraine’s telecoms sector would not have been possible”.

“Our long-term financial partnership with the EBRD and IFC underscores our shared commitment to Ukraine’s economic growth and highlights the country’s promising investment potential.”