Ufinet Revolving Credit Facility (IDBI-14673-01)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 26, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Ufinet Latam SL
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Communications
  • Infrastructure
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. 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, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IDBI website

Updated in EWS Feb 5, 2024

Disclosed by Bank Dec 22, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

Project description translated with DeepL.com:

The investment will be used to finance the implementation of fiber infrastructure following the CAPEX plan foreseen for Ufinet's subsidiaries in the coming years, including investments in equipment, materials and telecommunications facilities. The proposed transaction consists of (a) a revolving credit facility committed for a senior unsecured loan of up to US$50 million for CAPEX (b) a revolving credit facility committed for up to US$20 million for working capital, and (c) an uncommitted reverse factoring facility of up to US$30 million through which Ufinet's local suppliers can access improved terms and conditions.

In terms of term, the CAPEX facility will have a duration of 3.3 years with principal repayment every 1.5 years with interest payable quarterly and an availability period of up to 4.4 years; the WK facility up to 1.1 years, interest payable quarterly and a single principal payment at maturity with an availability period of up to 5 years; and the Reverse Factoring facility up to 0.6 years with an availability period of up to 7 years.

Project description in original language, as provided by the IDB Invest:

La inversion se destinara a financiar la implementacion de infraestructura de fibra siguiendo el plan de CAPEX previsto para subsidiarias de Ufinet los proximos anos, incluyendo inversiones en equipos, materiales e instalaciones de telecomunicaciones. La transaccion propuesta consiste en (a) una linea de credito renovable comprometida por un prestamo senior no garantizado de hasta US$50 millones para CAPEX (b) una linea de credito renovable comprometida por hasta US$20 millones para capital de trabajo, y (c) una linea de factoraje inverso no comprometida de hasta US$30 millones a traves de la cual los proveedores locales de Ufinet pueden acceder a terminos y condiciones mejorados.

En terminos de plazo, la linea de CAPEX tendra una duracion de 3.3 anos con amortizacion del principal cada 1,5 anos con pago de intereses trimestralmente y un periodo de disponibilidad de hasta 4.4 anos; la linea WK hasta 1,1 anos, intereses pagaderos trimestralmente y un unico pago de capital al vencimiento con un periodo de disponibilidad de hasta 5 anos; y la linea de Factoraje Inverso hasta 0,6 anos con un periodo de disponibilidad de hasta 7 anos.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Bloomberg, Ufinet Latam SL provides fiber infrastructure and transmission services. The Company offers data connectivity, Internet, collocation, dark fiber, remote access, and configuration solutions. Ufinet Latam serves customers worldwide.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Ufinet Latam SL Client Communications

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

IDB Invest General Contacts:

Email: requestinformation@idbinvest.org
Phone: +1(202)-566-4566
Address: 1350 New York Ave NW, Washington, DC 20005

Client - Ufinet Latam SL:

Email: amolina@ufinet.com
Phone: +34 91088 8570
Website: https://www.ufinet.com/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.iadb.org/en/access-information/information-request

ACCOUNTABILITY MECHANISM OF IDB / IDB INVEST

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IDB Invest)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IDB Invest is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

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How it works