Mobile Handset Receivables Purchase Facility (IDBI-12491-01)

Countries
  • Chile
Where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
C
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
Telefonica Moviles Chile S.A.
The holder of the loan, grant, or other investment.
Sectors
  • Communications
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IDBI website

Updated in EWS Nov 23, 2018

Disclosed by Bank Sep 28, 2018


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Project Description

According to the bank, the Project consists of an uncommitted receivables purchase facility for US$100 million ("Facility") to sell mobile phone handset receivables originated by Telefonica Moviles Chile S.A. (the "Company" or "Movistar Chile"). The Facility will have an availability period of 48 months. The receivables have a repayment period of up to 24 months from the issuance date of the lease contract. Under the Facility, IDB Invest shall purchase, in its sole discretion, the mobile phone handset receivables.

The Project seeks to support the adoption and use of smartphones that allow the final subscribers of Movistar Chile to access to data services. Greater access to data services has a positive impact on economic development since broadband penetration facilitates the creation of jobs, promotes the creation of businesses, increases productivity, and positively impacts per capita growth. However, there are important barriers to deal with dramatic growth in data uses, one of which is the cost of acquiring equipment and technologies that allow end users to use Internet services. The proposed Project is one of the ways that IDB Invest will seek to address this barrier.

Investment Description
  • IDB Invest
Private Actors
Contact Information

Client Contact name:
Felipe Flores

Title:
Manager - Sustainability Project Specialist

Phone number:
'+56 9 74972819

Email address:
felipe.floresr@telefonica.com

For inquiries and comments to IDB Invest, contact:          

IDB Invest’s Communications Group, E-mail: divulgacionpublica@iadb.org

For project inquiries, including environmental and social questions related to an IDB Invest investment, please contact the client or the IDB Invest using the contact information provided above.

As a last resort, project affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism:

Tel:         +1 (202) 623-3952

Fax:        +1 (202) 312-4057

Address: 1300 New York Ave. NW Washington, DC. USA. 20577

 E-mail: mecanismo@iadb.org or MICI@iadb.org