Cabo Telecom III (IFC-41688)

Countries
  • Brazil
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
Proposed
Bank Risk Rating
B
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
Dec 20, 2018
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
Cabo Servicos de Telecomunicacoes Ltda
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)
$ 120.00 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)
$ 282.00 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 @ IFC website

Updated in EWS Nov 23, 2018

Disclosed by Bank Nov 13, 2018


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Project Description

Triple Play Participações S.A. (“Company” or “Cabo”) is a holding company that currently owns two leading independent triple play (cable TV, telephony and broadband) service providers in the northeast Brazil cities of Natal and Fortaleza: Cabo Serviços de Telecomunicações Ltda. and Videomar Rede Nordeste S.A., respectively. The IFC financing will support Cabo to fund the service expansion investment plans to accelerate the growth of its footprint (the “Project”).

People Affected By This Project

1. Increase coverage: Promote broadband coverage penetration in frontier regions of the country (Northeast and North), thereby supporting regional economic development, expanding access to information, which in turn will transform the way private and public sectors operate and how services are delivered in the region.
2. Increase penetration of broadband services is expected to drive economic growth: Current fixed broadband penetration in the Northeastern region of Brazil is substantially below the rest of the country. Greater access to broadband is expected to contribute to economic growth by helping to bridge the supply gap, improving labor productivity and generating economic efficiencies.
3. Promote innovation: Broadband spurs innovation, promoting new business models across several sectors including education, health, e-commerce, e-Government, etc.
4. Enhance competition: Cabo - with a fully digital triple play offering - will promote convergence, reduce prices and improve service and availability of content. This will consequently help reduce the inter and intra-country digital divide by increasing competition and, particularly, promoting lower tariffs.

Investment Description
  • International Finance Corporation (IFC)
Private Actors
Contact Information

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/