De Novo Corporation is an early-stage Ukrainian IT services company founded in 2008 by Mr. Maxim Ageyev, the former president of Kvazar-Micro, one of the largest information technology companies in Ukraine and the CIS region, that was acquired by Sitronics (Russia) in 2004. KM Core Limited, a technology investment company, co-founded by Mr. Evgeny Utkin, former Chairman and CEO of Kvazar-Micro, is expected to join the Sponsor group and become De Novo’s beneficial majority shareholder. The Company is headquartered in Kiev, employs 70 staff, with a team of highly-qualified professionals with IT industry experience averaging ten years. The Company specializes in IT infrastructure services, such as IT infrastructure transformation and optimization, automation if IT services management and information life cycle management, and business applications implementation, such as core banking systems, business intelligence systems and ERP systems. These services compliment its major initiative, the De Novo Data Center, the first real Tier III data center located in Ukraine and most likely the most energy efficient data center in the country. Through this, De Novo aims to be the first provider of data center and business continuity services in Ukraine that is not telecom provider but a specialized IT services company.

The project cost is estimated at up to $20.0 million. The proposed IFC investment includes a $3.5 million equity investment.

3.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	3.50

* These investment figures are indicative

DeNovo has operations in Kiev, Ukraine. Its new data center operations will be located in an industrial area of Kiev.

Some of the development impacts are highlighted below: Improving IT infrastructure in Ukraine: Currently, there are no certified Tier III datacenters in Ukraine or data centers that fully meet the requirements of the National Bank of Ukraine. DeNovo would provide a service level that fully meets the requirements of financial institutions and auditors. Increase in capacity: Though there are more than a dozen data center services providers in Ukraine, the IT services market in Ukraine is underdeveloped and demonstrates a strong capacity on the demand side. Reduced climate change impact: DeNovo data center will be established using a "green" computing concept, i.e. implementation of energy-efficient computers, network servers and peripherals, as well as "free air cooling" technologies. The data center will install state-of-the-art special software based power management systems to optimize power usage. The power saving potential is up to 30%. Banking sector development: DeNovo will provide the local banking sector with access to high quality computing capacity with guaranteed up-time, power outage protection, operational data security, and communications redundancy. Outsourcing of data center services would allow Ukrainian customers to reduce Capex and operational costs, to free up cash to invest in the core business. Employment generation: Up to 30 new high-income jobs will be created due to the project implementation. Skills Training: DeNovo specialists will be able to get first-hand experience in operating Tier III datacenter which is now unavailable in the local IT market.

IFC will play an important role in supporting a domestic, early-stage company in establishing a new line of business and expanding its existing operations while enhancing DeNovo’s corporate governance. IFC will also encourage the company with Best Practice Environmental Policies. IT systems require significant power to operate. Hosting systems within dedicated data centers, as opposed to having corporations and governments host their own systems in-house, should reduce overall energy consumption due to both economies of scale and the use of specialized design. Data centers are more able to utilize new technologies designed to reduce environment impact such as combined heat and power (CHP) systems, power-managed servers and adaptive cooling. IFC would provide knowledge and work closely with DeNovo in the adoption of best practice environment policies with respect to data center design, equipment procurement, operations and staff training.

DeNovo datacenter facilities will be leased and custom-fit for DeNovo. During appraisal, environmental and social risks and impacts of any fuel tanks, cable connections, and security issues were reviewed. As a result of this review, the project has been classified as a Category C project according to IFC''s Environmental and Social Review Procedure