The Project will be developed as a partnership among IFC, Google Inc., Mitsui & Co., Ltd and Convergence Partners Communication Infrastructure Fund (together the Partners) in the project company to be established for this purpose CSQUARED LINK HOLDINGS (MAURITIUS) LIMITED (the Company or CSquared).CSquared will operate as an independent private company headquartered in Nairobi, Kenya

Google is a leading US-based international information technology company founded in 1998. Google's mission is to organize the world's information and make it universally accessible and useful. Through products and platforms like Search, Maps, Gmail, Android, Google Play, Chrome and YouTube, Google plays a meaningful role in the daily lives of billions of people and has become one of the most widely-known companies in the world. Google is a subsidiary of Alphabet Inc., which is publicly listed on NASDAQ.

Convergence Partners is a Pan-African ICT focused private equity player, delivering enhanced investment returns while underpinning Continental development. Convergence Partners has a proven track record of developing new investment opportunities as well as actively adding value to investments across the lifecycle of ICT assets. As impact investors, Convergence Partners brings its skills, experience and capital to accelerate ICT infrastructure development on the Continent, focusing on initiatives that increase availability of communications, broadband services and new technology offerings to the people of Africa. For more information, visit http://www.convergencepartners.com/

Mitsui is one of the most diversified and comprehensive trading, investment and service enterprises in the world, with 137 offices in 65 countries as of April 2017. Utilizing its global operating locations, network and information resources, it is multilaterally pursuing business that ranges from product sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects in the following fields: Iron & Steel Products, Mineral & Metal Resources, Infrastructure Projects, Integrated Transportation Systems, Chemicals, Energy, Food & Retail Management, Healthcare & Service, Consumer Business, IT &; Communication Business, Corporate Development Business. Mitsui is actively taking on challenges for global business innovation around the world. For more information, visit http://www.mitsui.com/jp/en.

The Project will initially involve the development and expansion of the existing operations initiated by Google in Uganda, Ghana. During this initial phase, the initial total project cost is estimated at US$66 million, and IFC will provide an initial equity investment of US$15 million CSquared will then serve as a platform to expand into new markets with additional investments in the Sub-Saharan Africa region in the future.

Blended Finance

IFC as implementing entity of the IDA19 PSW BFF is expected to provide USD 5 million in the form of warrants (“Blended Concessional Finance Co-investment”) convertible into equity. The Blended Concessional Finance Co-investment supports CSquared expansion in Togo and is needed to rebalance the risk-reward for the company’s shareholders who, in light of the high risk of the investment, would not be able to proceed with the expansion in Togo without the Blended Concessional Finance Co-investment. The level of concessionality (i.e., “subsidy”) provided by the Blended Concessional Finance Co-investment is expected to be in the range of 9%-15% of the total Togo project cost of US$23.6 million. This estimate is based on the difference between (i) a “reference rate” (either a market price if available or the price calculated using IFC’s base case projections and (ii) the “concessional rate” being charged by the Blended Concessional Finance Co-investment. In addition, IFC as implementing entity of the IDA20 PSW BFF is expected to provide up to USD5.0 million in the form of equity (“second Blended Concessional Finance Co-investment”).  The second Blended Concessional Finance Co-investment is needed to complete CSquared’s funding plan to expand in the Democratic Republic of Congo and Liberia. As the IDA20 PSW BFF investment will be made on the same terms as those of the Company’s common shareholders, no pricing concessionality (i.e., “subsidy”) is provided by the second Blended Concessional Finance Co-investment. Further details and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at: www.ifc.org/blendedfinance. As is the case with all of IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for DFI Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017.  Further information on these Enhanced Principles and IFC’s blended finance approach and governance can also be found at:  www.ifc.org/blendedfinance.

The Project will initially involve the development of the existing operations in Uganda (mainly in Kampala), Ghana (mainly in Accra). Additionally, the Project has developed operations in Liberia (mainly in Monrovia) and is currently considering expansion in new markets in Africa. CSquared's headquarter will be in Nairobi, Kenya. Additional markets in Sub-Saharan Africa are expected to be determined based on further review and approval by the Partners.