- First tranche of €12m loan paid to Kujtesa to finance expansion.
- Loan encourages competition in the telecoms sector.
- EBRD strategy focuses on helping SMEs to grow by providing finance and expertise.
A telecom company in Kosovo, already one of the bigger players in a sector with many small participants, will be supported by the EBRD through a €12 million loan financing to support its expansion plans.
After reaching agreement on 30 August, the EBRD made the first loan payment today.
Kujtesa provides broadband internet, residential cable market and other internet services.
Founded in 1995, the company is now a B2C and B2B independent provider of high-speed broadband internet, cable TV (including sports content) and fixed-voice services in Kosovo. Broadband growth potential in Kosovo is high, and the company’s competitive advantages, including the exclusive content it offers and a strong track record in acquisitions, position it well to capture this growth. Kujtesa’s management has an impressive track record in successfully implementing mergers and acquisitions strategies that have led to the gradual expansion of its subscribers’ base and network infrastructure across Kosovo.
The effect of the financing should encourage competition in the telecoms sector by financing the expansion of a credible challenger to the country’s biggest companies. The EBRD’s aim is to help small and medium-sized businesses in Kosovo restructure and become more professional.
The EBRD has invested €327 million in 57 projects in Kosovo to date.