35289 - Nxtgen

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Summary of Investment Information

Project Number

35289

Company Name

NEXTGEN TECHNOLOGY PTE LTD

Date SPI Disclosed

Mar 19, 2015

Country

India

Region

South Asia

Projected Board Date

Apr 30, 2015

Environmental Category

C - No Impact

Status

Active

Last Updated Date

Nov 30, 2016

Department

TMT, Venture Capital & Funds

Industry

Telecommunications and Technology

Previous Events

Approved : May 29, 2015
Signed : Jun 1, 2015
Invested : Jun 15, 2015

Sector

Internet Access Providers (Including ISPs, Datacenters)

Project Description

This is a revised Statement of Investment Information. The revision pertains to the Total Project Cost of the new facility in Bidadi Bangalore and the IFC Investment as equity funding.

NxtGen Technology Pte. Ltd (“NxtGen” or the “Company”) is a holding company in Singapore that invests in data center opportunities in emerging markets. NxtGen owns 100% of an operating subsidiary in India, NxtGen Datacenter & Cloud Technologies Pvt Ltd (“NxtGenDC”) with data center operations in Bangalore and Mumbai, and a new facility in the final phases of construction in Bidadi, Bangalore (the “Project”). NxtGenDC offers innovative data center solutions including a full range of Enterprise Cloud Services, High Density Data Center for Colocation & Dedicated Hosting and comprehensive Managed Technical Services.

The proposed Project consists of the expansion of existing data center operations and services in Bangalore and Mumbai, as well as the development, construction and operation of a 1,000 rack data center in Bidadi, Bangalore, with potential for expansion to 2,000 racks. Built to support high power density requirements, these data center facilities will narrow the supply gap to host Information and Communications Technology (“ICT”) Infrastructure for large and small enterprises and organizations, as well as provide off-site disaster recovery & backup of client data and systems.

Operating as a carrier neutral data center, these facilities will allow clients to locate ICT equipment and data in a secure and resilient facility, provide access to stable power supply and environmental conditions, and offer connectivity alternatives with a host of data carriers, guaranteeing seamless, reliable service.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	7.14

Development Impact

- Expansion of IT Infrastructure: India has an underserved demand of datacenter colocation and related technical services. By financing a secure, resilient, earth-quake-resistant dataccenter built to top industry standards, the Project will address the pressing need for quality IT infrastructure and services in the country.

- Private Sector Development. Outsourcing data center serrvices will enable tenants to benefit from significant cost savings by not tying up capital in the construction of non-core assets and freeing up resources for use in other areas.

- Greenfield Capital: Data centers are a mature industry in developed countries with international industry certifications and well-established best practices. However, there is a lack of investors that are willing to provide risk capital to greenfield capital intensive IT ventures in developing countries. IFC''s history of investments in the IT sector and openness to investing in well-designed greenfield projects enables IFC to provide the Project with funding at this early stage of the Company''s growth.

- Mobilization of Long Term Financing: The Company plans to continue to explore data center opportunities in other emerging markets in the future and will require further financing to realize this goal. A long-term relationship with IFC will give the Company the support it needs to do so in multiple geographies and support the Company''s efforts to attract additional financing from other sources.

- Knowledge Sharing: IFC''s global experience and strong understanding of data centers will benefit the client and help it in executing its business plan.

E&S Category Rationale / Risks and Mitigation

At appraisal, it was found that construction for NxtGen’s new building was in its final stage, and expected to be fully completed prior to IFC’s proposed subscription, with only fit-out of the building remaining to be completed following IFC’s subscription. As in IFC’s prior investments in data centers where only fit-out was required, environmental and social risk is expected to be low in this project, so it is classified as Category C. NxtGen will still be required to fill gaps as needed in its policies and procedures for managing human resources and for worker health and safety, and otherwise to comply with IFC’s Performance Standards.

Contacts

For Inquiries About the Project, Contact

Mr. A.S. Rajgopal
#72-73, EPIP Area, Whitefield
Bangalore 560066, India
Phone: +91 80 30986000
Website: http://www.nxtgen.com

For Inquiries and Comments About IFC, Contact

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Washington DC 20433
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Local Access of Project Documentation

NxtGen Datacenter & Cloud Technologies Pvt Ltd
#72-73, EPIP Area, Whitefield
Bangalore 560066, India
Phone: +91 80 30986000
Website: http://www.nxtgen.com

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