Summary of Proposed Investment
Project Number
10244
Company Name
Softbank Latin America Ventures
Date SPI Disclosed
Mar 9, 2000
Country
World Region
Industry
other
Status
Completed
Sector
Content (B2C Companies)
Department
WBG Digital and AI
Environmental Category
FI
Previous Events
Approved : Feb 11, 2000
Signed : Oct 19, 2000
Invested : Oct 27, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | Latin America - Softbank Latin America Ventures (SBLAV) |
RegionLatin America and the Caribbean
SectorTelecommunications
Project No010244
Projected Board DateFebruary 11, 2000
Company NameSoftbank Latin America Ventures
Technical Partner and/or Major Shareholders
Softbank Latin America Ventures (SBLAV) is owned by SOFTBANK Corp., a Japan-based global Internet company (90%), and IFC (10%). Other strategic investors may be identified by the sponsors
Project Cost Including proposed IFC investment
Total project cost is estimated at $150 million financed with equity only. IFC''s equity investment will total $15 million.
Location of project and Description of site
The fund will invest in companies throughout Argentina, Brazil, Mexico and other Latin American countries.
Description of Company and Purpose of Project
SBLAV is a fund that will invest in Internet companies in Latin America. The fund will incubate foreign business models and also invest in local businesses. The investment will bring successful leading edge Internet models to Latin America, and foster local enterprises, through the incubation approach that allows entrepreneurs to focus on business concepts while a core of centrally-based experts handles many of the ancillary business start-up requirements. Growth of e-business and Internet-based enterprises in the developing world will narrow the gap, or digital divide, between countries with access to information technology and countries that are hampered by reliance on traditional sources of information and business tools.
The project will seek to improve Internet access levels in targeted Latin American countries by generating investor interest in emerging markets, which in turn should help lower the price of Internet access and increase the number of subscribers.
IFC''s presence in the project would help to focus attention on the opportunities in Latin America in this rapidly developing industry; provide the credibility necessary for the project to attract top level strategic business partners and entrepreneurs; provide Latin America with knowledge and expertise that will be critical for the successful implementation of the project; identify some of the constraints impeding the diffusion of Internet applications; and bring parallel investment and expertise to develop the enabling physical and commercial infrastructure.
Environmental Category and Issues
This is a category FI Type 2 project according to IFC''s environmental and social review procedure. The project sponsor has committed to establishing an environmental management system to ensure that investments will be consistent with the environmental health and safety requirements of the country of location and with IFC environmental and social safeguard policies; will not involve companies whose principal business includes activities on IFC''s exclusion list; and will not invest in companies whose principal business involves environmental Category A projects/activities (category A investments are those with the potential for diverse and significant environmental impacts). In addition, the company''s staff with responsibility for environmental and social issues will participate in an environmental and social management workshop and provide an annual environmental progress report.
| Date SPI sent to InfoShop | March 9, 2000 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Sponsor / Cost / Location
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