Incorporated under the laws of Afghanistan and headquartered in Kabul, Roshan is 100% owned by Telecom Development Company Afghanistan B.V. (“TDCA B.V.”), a company incorporated in the Netherlands. TDCA B.V. is itself 51% owned by the Aga Khan Fund for Economic Development (“AKFED”), 36.75% by Monaco Telecom International and 12.25% by TeliaSonera AB.

AKFED is part of the Aga Khan Development Network which encompasses a number of non-profit agencies, active in sectors such as rural development, microfinance, health and education services, cultural development, as well as its for-profit agency, AKFED, which makes long-term investments in developing countries. AKFED is a private company.

Monaco Telecom International is a 100% subsidiary of Monaco Telecom Group, which itself is 55% owned by Cable & Wireless Communications Plc and 45% owned by the Principality of Monaco. Monaco Telecom is a private company.

TeliaSonera AB is a leading telecommunications operator in the Nordic and Baltic regions. TeliaSonera is a public company and is listed on the Stockholm Stock Exchange.

The total Project cost is estimated at US$147 million, which includes the acquisition of a 3G license, capital expenditures to roll-out the 3G network and loan repayments. The proposed IFC investment is an A Loan of up to a $65 million for IFC’s own account.

65.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	65.0
Equity

* These investment figures are indicative

Roshan is headquartered in Kabul, Afghanistan and operates in approximately 230 cities and towns in all of Afghanistan's 34 provinces and covers approximately 60% of the population.

(i) Enhance use of telecommunication services in a low income country, through the roll-out of a 3G network, which will enable more people to access to broadband data services especially given Afghanistan's low fixed line penetration of less than 0.2%.
(ii) Expand geographic coverage: While approximately 60% of the population is within reach of its network, Roshan is planning to extend service further to rural and untapped areas, with a population coverage target of 80% in five years.
(iii) Extend economic opportunity and financial inclusion to all Afghans: Roshan's M-Paisa service has provided, since 2008, the Afghan population with mobile banking services, such as money transfers, bill payments and salary payments to the unbanked population in the country. There are approximately 130,000 M-Paisa users and with the introduction of better quality 3G technology, the number of users is expected to grow to approximately 1.3 million by the end of 2016.
(iv) Improve the well-being of people in Afghanistan through its corporate social program, Roshan Community: Roshan will continue to develop and financially support a wide range of programs aimed at improving the well-being of the people of Afghanistan that are focused on six main areas: healthcare, education, commerce, social welfare, arts & culture and the environment.
(v) Provide political risk mitigation: In view of the increasing challenging security situation in Afghanistan coupled with the planned withdrawal of troops in 2014, country risk and security concerns continue to be the primary barriers to foreign investment in Afghanistan. By supporting this project, IFC is expected to send a positive signal to potential investors that it is possible to finance infrastructure projects in Afghanistan.

(i) Financial support to a priority post-conflict country: Due to decades of war and complete lack of foreign investment, Afghanistan is today one of the world's poorest countries with a per capita GDP of about US$500. About 97% of the population is unbanked and access to finance for large corporate remains extremely difficult. In this context, IFC will play a key role in providing financial support to a growing company with limited access to funding from private commercial banks.
(ii) Long-term financing: Long-term funding from private sources is extremely limited in Afghanistan. IFC's provision of long-term debt is critical for Roshan to help finance the 3G license acquisition and capital expenditures required for the network roll-out. As well, extending the tenor of Roshan's debt will provide the Company with greater operational flexibility.

Environmental and social risks and impacts in this project are expected to be limited, so the project is classified as Category B according to IFC's environmental and social review procedure.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.