Sonic Duo

completed

Sonic Duo was established to offer GSM mobile cellular services in the Moscow license area, covering the city of Moscow and the Moscow Oblast. In May 2000, Sonic Duo received the third cellular license in Moscow to offer GSM cellular services in the 900/1800 MHz frequency range. This project would help the company build out its network and provide GSM cellular service to the area.This project will help increase the country''s wireless penetration directly by spurring competition in the Moscow license area, and also indirectly, by promoting additional investment and growth to other areas of Russia through the demonstration effect, attracting other telecommunications operators as the market and industry mature. IFC would provide long-term financing for its own account and for the account of participant banks, which is not otherwise available. At present, long-term commercial financing is not available in Russia, particularly on the tenor and conditions necessary to finance a major infrastructure project. The project would therefore mobilize foreign direct investment in Russia, providing a demonstrative effect by showing that longer-term financing is available in the country on a project finance basis for non-export driven projects.