Sponsor: Kacific, established in 2013, launched its first satellite, Kacific-1, in December 2019. Kacific-1 coverage is dedicated to Asia and the Pacific Islands, covering remote locations, where internet penetration rates remain very low due to the absence of affordable alternative solutions.

Shareholders: Kacific currently has a very diffused shareholding structure and the majority of shareholders holding single digit equity stakes, the top five of which own around 50% of Kacific. The remaining is held by shareholders, each owning less than a 5% stake.

The total project cost is estimated at US$129 million. The proposed financing includes: (i) up to US$50 million of senior debt from IFC; (ii) up to US$49 million of subordinated debt from IDA-PSW facility.

The satellite, Kacific 1, is currently providing broadband services across 25 countries of Asia and Pacific, covering Indonesia, Philippines, New Zealand, Papua New Guinea and the Pacific Islands with 56 user beams. The top 5 total bandwidth allocations by country are to Indonesia, Philippines, Papua New Guinea, New Zealand and Kiribati. Kacific currently has 6 office locations across Singapore, Philippine, New Zealand, Vanuatu, Timor-Leste and Australia.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability (2012) because the IFC-financed business activity has potential limited adverse E&S risks and/or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures. Key E&S aspects include (i) the adequacy of the client’s E&S management system (ESMS) and organization; ii) alignment of labor and working conditions at Borrower facilities and operations with host country and IFC’s PS2 requirements; iii) management of third-party employees; iv) waste management including hazardous wastes and materials; v) emergency preparedness and response including life and fire safety (L&FS) and (vi) stakeholder engagement and grievance redress mechanisms.