GTS Central Europe

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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. 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. 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 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. €330 million. 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. None.