ON was founded by Fares Nassar and Zaki Rakib, two entrepreneurs who still hold management positions and minority stakes in the Company. In 2012, Quantum Strategic Partners (“QSP”), a private investment vehicle headquartered in New York and associated with Soros Fund Management, acquired a majority stake in the Company.

Quantum Strategic Partners is a private investment vehicle managed by Soros Fund Management LLC (“SFM”). SFM is a multi-strategy fund that manages over U$S25 billion in assets. QSP focuses globally on private investments in several strategies, including capital-intensive start-ups, buyouts, and growth equity transactions.

Fares Nassar has held several positions in engineering and marketing at leading California/Silicon Valley vendors such as Ericsson & IBM. In 1992, he founded Lotier (the vehicle through which he owns a minority stake in ON Telecom), a company focused in broadband technology and applications, particularly in developing markets, which has deployed networks and business ventures in Latin America, Africa, the Middle-East and Europe. In 2000, Fares co-founded and headed Chello Latam, a multinational broadband Internet Service Provider (“ISP”) in partnership with Chello Europe, then Europe´s largest broadband ISP and sold it to Liberty Global in 2004. In 2008, Lotier invested in Comium Data, a multinational wireless broadband operator operating Wimax networks in Lebanon and 8 countries in Africa. Mr. Nassar holds Master Degrees in Engineering and Management from Stanford University, and a Bachelor Degree in Electrical Engineering.

Zaki Rakib is an entrepreneur in the telecom field, having founded and managed several technology and media ventures. In 1994, Mr. Rakib co-founded Silicon Valley-based Terayon and served as its CEO from inception to September 2004. Terayon developed equipment for broadband service providers to deliver voice, video and data services. It was the major supplier to the Brazilian cable operator NET and enabled the deployment of the first cable modem service in Brazil. Terayon was ultimately sold to Motorola. Mr. Rakib holds a Ph.D. in Mechanical Engineering from the Ben-Gurion University in Israel.

Total Project Cost is estimated at US$250 million. The proposed IFC investment amounts to up to US$90 million (36% of the Project Cost), including an up to US$20 million equity investment, an up to US$30m million senior loan for IFC’s own account, and up to US$40 million in syndicated or parallel loans.

55.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	30.0
Equity	25.0

* These investment figures are indicative

The Company is headquartered in Campinas, Sao Paulo State, Brazil. Its current operations are located in the interior of the Sao Paulo State where the Company provides wireless broadband internet services prioritizing urban and suburban areas with poor or no fixed line networks in place. ON’s current licenses cover 133 cities in the interior of Sao Paulo State and is exploring the acquisition of additional Brazilian regional licenses.

- Expand access to broadband internet: ON is targeting underserved cities and households with poor or no fixed-line internet service, including largely lower income segments of the population.
- Replication effect: ON''s innovative technology could play a key role in addressing Brazilian challenges to deploying broadband internet service over a vast territory with no or poor fixed line penetration. ON has a strong team in place, capable of implementing the technology and with the intention to replicate the experience in broader areas of the country and internationally.
- Reduce connectivity costs: the rollout of On''s operations will catalyze a reduction in wholesale bandwidth costs and subsequently, a reduction in retail bandwidth costs for corporate and residential subscribers.
- Promote economic growth: According to World Bank, a 10% increase in broadband internet access contributes to a 1.5% increase to GDP. Broadband positively impacts productivity and promotes new business models across several sectors, including e-education, e-health, e-commerce, e-Government, etc.
- Job Creation: The Project will also contribute in the creation of direct employment opportunities.

- Early stage operation: IFC provides critical financial support at a challenging stage (i.e., prior to operational startup).
- Best practices / experience / stamp of approval: Leveraging IFC''s track-record, knowledge and network, the Company can further expand its concept across the country as well as overcome local market hurdles and establish long-term business partnerships with other industry players.
- Knowledge of Policy and Regulation: As part of World Bank Group, and leveraging on the latter''s activities in the region, IFC brings the ability to address potential policy/regulatory issues.
- Mobilization of third party financing.

The key environmental and social issues associated with this project are in the construction of towers and laying of cable; labor and working conditions (including employee and contractor occupational health and safety); and pollution prevention and abatement. Details are contained in the Environmental and Social Review Summary for this project. 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.