IFC will invest US$97.5m into On Telecom to support the Brazilian broadband operator in increasing its network coverage to underserved areas.
The World Bank’s private investment arm joins On Telecom’s existing investors Zaki Rakib, Fares Nassar and…
IFC will invest US$97.5m into On Telecom to support the Brazilian broadband operator in increasing its network coverage to underserved areas.
The World Bank’s private investment arm joins On Telecom’s existing investors Zaki Rakib, Fares Nassar and George Soros’s Quantum Strategic Partners.
The financing consists of US$27.5m in equity and a loan of up to US$70m, US$40m of which will be through syndicated loans.
Explaining its investment, the IFC said that according to World Bank research, every 10% increase in penetration of broadband services results in a 1.3% increase in economic growth.
On Telecom began operating in March 2013 and offers broadband in rural areas of Sao Paulo state through 4G and a fledgling fibre network.
Aniko Szigetvari, head of telecom, media and technology for IFC in Latin America and Africa, commented: “Our investment in On Telecom plays an important role in IFC’s strategy to help address Brazil’s infrastructure bottlenecks and unlock the innovation and efficiency gains that are created by increased internet access”.
