VMLA - Peru (IFC-37677)

  • Peru
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
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
Aug 30, 2016
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.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Communications
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 13.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 16, 2017

Disclosed by Bank Apr 21, 2016

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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.
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
Here you can find a list of individual development financial institutions that finance the project.
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
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.
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/

How it works

How it works