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IFC Announces a $97.5 million Investment, including Equity, in ON Telecom to Boost Telecommunications Infrastructure in Brazil

São Paulo, Brazil, September 16, 2014 - IFC, a member of the World Bank Group, will support the expansion of ON Telecom, a Brazilian broadband internet services provider, to increase the company’s network coverage and provide high-quality broadband internet connectivity to underserved regions in the State of São Paulo.
IFC will invest a total of up to $97.5 million in ON Telecom. The financing package includes $27.5 million in equity, and a loan of up to $70 million, which includes approximately $40 million equivalent in syndicated loans.
According to World Bank research, every 10% increase in penetration of broadband services results in 1.3% increase in economic growth. ON Telecom’s potential market consists of more than 10 million people in 133 cities and towns, with very low existing broadband internet penetration. Many of the company’s customers are first-time broadband users who had no previous connection to broadband services, or users who switched from other internet service technologies with significantly lower speed and capacity.
Operating in Brazil since March 2013, ON Telecom has been rapidly expanding its subscriber base and extending coverage to multiple cities in São Paulo State. The company uses 4G TD LTE technology, and has invested in building its own fiber network connecting the served cities, to ensure high quality services.
“ON’s team is proud to dedicate its efforts to the purpose of connecting the unconnected. We are very excited to have IFC joining us in this mission”, says Farès Nassar , CEO, ON Telecom.
“Improving access to broadband is key for Brazil’s competitiveness and economic growth, says Aniko Szigetvari , Head of Telecom, Media and Technology for IFC in Latin America and Africa. “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”.
Since 2008, IFC has committed close to $1bn to supporting the telecommunication sector in Latin America. In fiscal year 2014, IFC’s commitments to the telecom sector in Brazil represented 55% of overall commitments to the telecommunications sector in Latin America.
Present in the country since 1956, IFC has been investing about US$ 2 billion per year in Brazil to help address the country’s most pressing development challenges, including those of urbanization, social inclusion, competitiveness and productivity, as well as management of natural resources.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
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About ON Telecom
ON Telecom, a new telecommunications company in Brazil and a pioneer provider of 4G broadband, utilizes the most up to date technology in the world, TD-LTE, offering the best access to high-speed Internet: wireless, portable, easy, fast and stable. ON’s primary commitment is to the quality of care provided to its customers, serving the unserved and the poorly served. ON’s network is expanding in São Paulo State, covering initially 133 cities with a population of about 10 million people. Headquartered in Campinas (SP), ON has as shareholders Zaki Rakib, Farès Nassar, Quantum Strategic Partners Ltd, and now IFC. /