Digital Bridge Emerging Markets (IFC-45362)

Regions
  • Latin America and Caribbean
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
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
Sep 28, 2021
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
DIGITAL COLONY ACQUISITIONS
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Communications
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Sep 15, 2021

Disclosed by Bank Aug 27, 2021


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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.

Certain investment funds sponsored by DigitalBridge Group, Inc, which are focused on privately negotiated investments in worldwide digital infrastructure (“DI”) assets and businesses (the “Funds”) (together, with their respective affiliates as applicable, “DB”), have over $35 billion in assets under management as of June 30, 2021. The DI subsectors include tower, data center, small cells/DAS, fiber, and outdoor digital infrastructure assets. DB operates more than 440,000 communication tower sites, over 130,000 route miles of dense metro fiber, more than 80,000 small cell nodes, and over 100 data centers.

The proposed Project consists of a US$100 million equity commitment, to be invested in pre-identified co-investments managed by affiliates of DB which are portfolio companies of investment funds managed by affiliates of DB (each, a “DB Fund” and together the “DB Funds”) and/or a DB Fund Emerging Markets SideCar (“EM SideCar” or “SideCar”). The investments consider:

a) co-investment in Scala, one of the leading hyperscale data center platforms in Brazil, with expansion plans across Latin America. Scala currently operates four data center facilities in Brazil with +50 MW of total power availability and a roadmap to over 80MW of IT critical capacity;

b) co-investment in Highline, one of the largest independent tower companies in Brazil, growing through acquisitions of assets known to IFC (Phoenix Towers do Brasil, a former IFC client) and other assets, as well as build-to-suit construction of towers. Highline has outdoor and indoor sites located in the main Brazilian cities across 27 states. It has approximately 4000 outdoor macro and rooftop sites, 300 indoor DAS systems, and 600 small cell nodes and biosites, with approximately 58% greenfield sites;

c) co-investment in EdgePoint, a newly established tower company, envisioned to grow across Southeast Asia (aiming to manage 20,000+ sites) with initial focus on Indonesia and Malaysia. In Malaysia, EdgePoint acquired Asiaspace Sdn Bhd, along with its 178 telecommunication towers in May 2021 and has continued expansion since then. Currently, EdgePoint has 190 assets across Peninsular Malaysia. In Indonesia, EdgePoint owns a majority stake in PT Centratama Telekomunikasi Indonesia Tbk (“Centratama”), an independent Indonesian tower company who owns and manages over 4,200 sites, It subsequently entered into a sale leaseback agreement for Indosat Ooredoo’s 4,247 towers (transaction closed in May 2021), and also has entered into an arrangement to build approximately 1,250 greenfield sites for Indosat.

d) commitment to the EM SideCar, a blind pool fund expected to be formed to invest in DI alongside a DB Fund; DB currently expects the SideCar to focus on investments in Latin America and East Asia. The SideCar has not been created yet, and should it not materialize, IFC will have the option to invest in other managed emerging market co-investments at IFC’s discretion.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
DigitalBridge Group, Inc Client Communications invests in EdgePoint Investor Communications
DigitalBridge Group, Inc Client Communications invests in Highline Investor Communications
DigitalBridge Group, Inc Client Communications invests in International Finance Corporation (IFC) Buyer Finance
DigitalBridge Group, Inc Client Communications invests in Scala Investor Communications
International Finance Corporation (IFC) Investor Finance contracts with DIGITAL COLONY ACQUISITIONS Subsidiary Finance

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.

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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