Washington, D.C./ Mexico City. June 16, 2014
—IFC, a member of the World Bank Group and the Central American Mezzanine Investment Fund II LP (CAMIF), managed by LAP Latin American Partners, have jointly entered into a $22.5 million loan package for Virgin Mobile México to help the company launch operations in Mexico. This investment will also promote competition and innovation, and expand access to affordable voice and broadband services.
IFC provided $11.25 million from its own account and mobilized an additional $11.25 million from CAMIF. Virgin Mobile México will operate as a Mobile Virtual Network Operator (MVNO) by purchasing wholesale voice and data services from incumbent wireless operators. The company will primarily cater to the youth segment with a compelling data-centric proposition.
IFC has been a key supporter of Virgin Mobile’s entry in Latin America. In June 2012, IFC provided $11 million to support Virgin Mobile’s launch in Chile, and in December of that year IFC provided $14 million to accelerate the company’s entry in Colombia. In both markets Virgin Mobile is the leading MVNO in total customer numbers and rate of growth.
“The company is adding well over 100,000 new subscribers per month and has reached one million active customers in the region. IFC has been a strategic partner in this successful expansion throughout the region and now we welcome CAMIF as an investor. We are certain the success will be replicated in Mexico,” said Peter Macnee, President and CEO of Virgin Mobile Latin America (VMLA).
“IFC’s and CAMIF’s investment will stimulate competition in México’s mobile telephony market. This will help increase penetration through affordable and transparent plans targeted to the specific needs of the youth market”, Irene Arias, IFC Director for the Latin America and Caribbean Region. “Greater competition leads to better service at more affordable prices, which ultimately benefits consumers.”
Teseo Bergoglio, Partner of CAMIF, said: “the Mexican mobile market is ripe for a new player with a customer focus, a fresh and strong brand, and the right product offering addressing the current market demand for higher data traffic, especially among the youth segment.”
IFC’s strategy in México is focused on investment and advisory projects that help accelerate growth, improve competitiveness, promote social inclusion, and reduce poverty. Between Fiscal Years 2011 and 2013, IFC invested USD$2.4 billion in México, including USD$1,903 million from its own account and USD$584 million in mobilization.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
About Central American Mezzanine Infrastructure Fund II
CAMIF II is an investment fund active in infrastructure and other sectors in México, Colombia, Central America and the Caribbean. It is managed by LAP Latin American Partners which also manages the fully-invested CAMIF of similar focus. LAP is headquartered in Washington, D.C. with offices in México City, México and Tegucigalpa, Honduras. Contacts: Latin American Partners: Lucas de Beaufort: deBeaufortl@lapfunds.com, +1 (202) 530 3180