VMLA - Peru (IFC-37677)

Countries
  • Peru
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Hold
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.
Voting Date
Aug 30, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
VIRGIN MOBILE PERU SA
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)
$ 13.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 16, 2017

Disclosed by Bank Apr 21, 2016


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Project Description
IFC will be providing a financial package of up to US$13 million to fund VM Peru (VMP). VMP will be offering mobile phone services primarily to the youth segment, with a targeted offering that will expand mobile broadband usage with attractive data packages. The IFC's stated goals for this project include targeting youth, an innovation/demonstration effect, productivity enhancement and economic growth through increased broadband connectivity, infrastructure sharing, and availability, affordability & inclusion of underserved markets. As VM Peru operates virtual mobile telecom services using leased office space and no other infrastructure, the main environmental and social risk in this project is expected to be in the company’s management of human resources. That risk is expected to be low, so the project is classified as Category C according to IFC's environmental and social review procedure. Still, VM Peru will be required to implement policies and procedures to manage its human resources in compliance with IFC Performance Standards.
Investment Description
  • International Finance Corporation (IFC)
The proposed IFC investment is in the form of a C Loan of up to US$13 million. Together with Sponsor equity, IFC funds will help the Company to roll-out operations in Peru. VMLA follows a branded venture capital model, with independent private investors funding a venture supported by a well-known consumer brand, “Virgin Mobile”. Main shareholders of VMLA are Temasek with 17.9%, ePlanet Capital with a 11.1% stake, Hermes Growth Partners with 12.5% and Virgin Enterprises with 6.8%, followed by several other institutional investors, founding partners and management.
Contact Information
Peter Macnee President & CEO VMLA Lynex Chambers PO Box 4408 Road Town Tortola VG1110 British Virgin Islands Telephone: +1-201-248-4465 Fax: n/a Email: mailto:peter.macnee@virginmobilelatam.com Guillermo Mulville (Team Leader) Principal Investment Officer - IFC Tel: +54.11.4114.7206 Email: mailto:gmulville@ifc.org Pablo Piffaretti (Transaction Leader) Investment Officer - IFC Tel: +54.11.4114.7221 Email: mailto:ppiffaretti@ifc.org ACCOUNTABILITY MECHANISM OF IFC The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/