Phnom Penh, Cambodia, March 25, 2009—
IFC, a member of the World Bank Group, has organized a $100 million investment in Cambodia’s CamGSM Company Ltd to help strengthen the telecommunications sector and expand access to affordable mobile services in rural areas.
IFC is providing up to $40 million from its own account and has mobilized an additional $60 million from ABN AMRO, Cordiant Capital, DnB NOR, and Nordea. CamGSM plans to expand and improve existing network coverage and services, particularly in rural areas where the majority of Cambodians live and poverty rates are highest.
“IFC is providing long-term financing, which is not readily accessible in frontier markets like Cambodia,” said Jeffrey Noble, CamGSM’s interim CEO. “This is a wonderful vote of confidence in Cambodia at a time when the impact of the global recession has started to affect the economy. IFC’s reputation has also brought in other international banks, which should attract more such important financing to the country.”
IFC’s investment is also designed to support the government’s goal of stimulating competition in the telecommunications sector. As part of the initiative, CamGSM aims to add an additional 2 million subscribers by 2010, and to help businesses grow by providing them with better mobile internet coverage.
“Expanding availability of affordable cell phones will be of great benefit to poorer people,” said Sin Foong Wong, IFC Country Manager for Cambodia. “This will allow distant family members to stay in touch, village health workers to get expert advice in emergencies, and farmers to keep up with market prices.” He also noted that cell-phone banking is another benefit that will allow people to pay bills and transfer money safely.
CamGSM, which is branded in the market as Mobitel, is owned jointly by Millicom Holdings Cambodia B.V. (61.5 percent) and Royal Group (38.5 percent). Millicom Holdings Cambodia is a subsidiary of Millicom International Cellular S.A., a leading international cellular company with operations in 16 countries. Since Millicom launched in the 1990s, IFC has made nine investments in the company’s operations in Asia and Central and South America.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
