37425 - O3B II

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Summary of Investment Information

Project Number

37425

Company Name

O3B NETWORKS LTD

Date SPI Disclosed

Oct 2, 2015

Country

World Region

Region

Global

Projected Board Date

Nov 9, 2015

Environmental Category

C - No Impact

Status

Completed

Last Updated Date

Feb 26, 2017

Department

Gbl Infrastructure & Natural Resources

Industry

Telecommunications and Technology

Previous Events

Approved : Nov 16, 2015
Signed : Nov 30, 2015
Invested : May 26, 2016

Sector

Other (Including Satellite Telecommunications, Radio and Television Broadcasting, etc.)

Project Description

O3b Networks Ltd. is a communications company that operates a constellation of satellites in the Medium Earth Orbital (MEO) altitude. The network currently consists of twelve Ka-band satellites orbiting at an altitude of 8,000 km. As a result of the satellites’ proximity to earth, O3b’s network is able to provide low cost, low latency, and high quality broadband connectivity to all several customers located worldwide between 45 degrees latitude North and South, covering most emerging markets. The current Project consists of financing the construction of O3b’s eight additional satellites (Satellites 13-16 and 17-20) and the launch costs of Satellites 13-16, to provide additional capacity to meet expected demand. This will bring the constellation ultimately to 16 operational spacecraft.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	4.20
Equity

Development Impact

LONG TERM FINANCING: Long-term financing is required for a satellite operation, which is characterized by high upfront costs prior to launch and high, stable cash flow thereafter.
STRENGTHENING PARTNERSHIP WITH EXISTING CLIENT: O3b is a current client of IFC. IFC and its exiting lenders helped the Company restructure its debt when it faced financial difficulties. The Company has again invited IFC to be part of this new financing round and play a leading role in arranging the new Senior Debt facility from the group of DFIs. This is evidence of the strong value and appreciation that the Company places on IFC''s involvement and value-add.

E&S Category Rationale / Risks and Mitigation

Under IFC’s first investment in O3b, environmental and social (E&S) performance has been fully satisfactory. At appraisal for the proposed new investment by IFC, it was determined that O3b’s key E&S risk remains in the siting and development of teleport sites, as it was at appraisal for IFC’s first investment in O3b. However, in IFC’s first investment in O3b, it was considered possible that new teleport sites would be developed by O3b – whereas in O3b’s new project, O3B plans only to lease space for O3b’s teleport equipment at existing antenna farms. As a result, E&S risk is expected to be reduced in this project, and it is classified as Category C. O3b will still be required to continue implementing E&S policies and procedures developed under IFC’s first investment, as needed, to comply with IFC’s Performance Standards.

Contacts

For Inquiries About the Project, Contact

Thai Rubin
O3b Networks Limited
3rd Floor, Anley House
Anley Street
St Helier
Jersey JE2 3QE

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

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Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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