Digital cable systems
Country:
Romania
Project number:
47301
Business sector:
Information and Communication Technologies
Notice type:
Private
Environmental category: Target board date:
Project description
The EBRD is providing a new EUR 10 million loan to Digital Cable Systems SA (“DCS”), the fourth largest Cable TV (“CATV”) operator in Romania to finance capital expenditure, to help the company extend and upgrade its cable TV and Broadband networks, as well as increase the penetration of digital and internet services within its footprint. The company is also planning to launch new services for its customers, in line with the latest market developments, as part of the current development strategy.
The financing follows a previous EBRD loan which supported the company’s development strategy, including regional expansion and digitisation of analogue networks.
Transition impact
The main transition impacts of this operation are expected to come from (i) increased competition outside of the large urban areas where DCS’ presence will improve the quality of network and services as well as the product offering through the present Triple-play services (CATV, internet, telephony); and (ii) market expansion as current penetration rates, especially in the fixed broadband Internet segment, are low in Romania compared to more developed EU countries, in particular in the rural areas.
The client
DCS, established in 2005 through the merger of several cable TV operators, currently operates Triple Play networks in more than 2, 800 localities, in 29 out of the 41 counties of Romania. The company is controlled by the private equity fund PineBridge New Europe Partners, in which the EBRD is a limited partner.
EBRD finance
Up to EUR 10 million senior long term debt financing.
Total project cost
Up to EUR 28 million of which a large part will come from the internally generated cash.
Environmental and social categorisation, impact, and mitigation
Categorised C (2014 ESP): The project is an extension of the existing project which is unlikely to be associated with significant environmental and social issues. Digital Cable Systems SA is an existing client of EBRD and previous ESDD proved that the client is in compliance with relevant environmental, labour, occupational health and safety requirements of the Bank and has adequate environmental and social risk management capacities. The client regularly submits annual environmental and social reports which are judged satisfactory to date. The client is required to continue to comply with the PRs and submit annual environmental and social reports to the Bank.
Technical cooperation
None.
Company contact
Dinu S Malacopol
CEO, Digital Cables Systems SA
10A, Dimitrie Pompei Bd. Connect Business Park
Bucharest, District 2
Phone: +40 21 529 6001; Fax: +40 21 529 6002
Business opportunities
For business opportunities or procurement, contact the client company.
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Tel: + 7168
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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.
Text of the PIP
Project Complaint Mechanism (PCM)
The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm.
