The Company is controlled by an investment fund managed by Discovery Global Citizens Capital Partners, LLC (“Discovery”). Discovery is an investment management firm based in South Norwalk, Connecticut, USA specialized in global emerging markets with long/short investments in equities, fixed income, currencies, commodities and private equity. Together with its affiliates, Discovery maintains investments in more than 50 countries around the world with assets under management exceeding US$10 billion.

IFC is considering an equity investment in Avantel as well as an A Loan for IFC’s own account and mobilization of additional financing in the form of an IFC B Loan and/or IFC mobilized parallel loans.

The potential financial support to Avantel is being considered on a non-exclusive basis and is contingent on the result of an ongoing spectrum auction. IFC is open to consider supporting other 4G license bidders to help support the Government’s commitment to increasing competition and improving quality of service in the Colombian telecommunications sector.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	15.0

* These investment figures are indicative

Avantel is headquartered in Bogota, Colombia. The proposed expansion is to deploy nationwide Avantel’s presence in the mobile voice and data segment.

- Productivity enhancement/Economic growth: Broadband directly contributes towards improving private sector productivity and has a transformative effect on economic and social development. The contribution of broadband connectivity to economic growth and as an enabler to other innovative business models (e-health, e-education, e-commerce etc.) is widely accepted. The World Bank Group''s "Information and Communications for Development report" 2009 sites a 1.38% increase in economic growth in low- and middle-income economies for each 10% increase in broadband penetration. Recognizing this, the Colombian government has recently launched several initiatives to increase broadband penetration in the country, one of which is "Live Digital" ("Vive Digital"), which aims to increase Colombia''s internet connections to 8.8 million by 2014.
- Innovation/International competitiveness: Broadband enables access to ideas and idea exchange globally, thus transforming research and development. It facilitates trade in services and globalization and improves countries'' competitiveness. According to the World Economic Forum report, "The Global Information Technology Report 2010-2011", there is a direct correlation between the Network Readiness Index, which measures the use and development of ICTs and countries'' international competitiveness.
- Improved performance of social services: Availability of broadband improves public services and enhances national business environment and competitiveness. Access to broadband and consequently to greater data transparency and mobility also strengthens the ability to monitor service delivery and accountability in health, health insurance system for the poor, education, early childhood development etc.
- Reducing poverty/unemployment: The Colombian Ministry of ICT in its "Live Digital" initiative values the direct correlation between internet penetration, employment generation and poverty reduction. The Ministry sites a study by Raul Katz from Colombia University which cites that in Chile a 10% increase in Internet penetration led to a reduction of unemployment by 2%. According to a UNCTAD "Information Economy Report" for 2010, in developing countries such as the Philippines and India, for each job created in the ICT industry between 2 and 3.5 additional jobs in the economy were generated.
- Competitive Environment: The project wil contribute to competition in a higly concentrated market while promoting broader product offerings and higher quality of service.

Long term financing: New entrants typically face difficulties in raising financing for greenfield/pre-auction stage operations. Without long term financing, Avantel would not be in the best position to fulfill its projected capital expenditure program, and to achieve expected results from its business plan.

Mobilization/ Business model validation: IFC''s participation will help further validating the business model and contribute to mobilizing debt financing from other sources.

Promote competition: The support of new entrants to the Colombian telecom business will result in improved services, better coverage and lower costs.

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.