25545 - Idea Cellular

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Proposed Investment

Project Number

25545

Company Name

VODAFONE IDEA LIMITED

Date SPI Disclosed

Feb 19, 2008

Country

India

Industry

Telecommunications and Technology

Projected Board Date

Mar 20, 2008

Status

Completed

Sector

Mobile Telephony

Department

TMT, Venture Capital & Funds

Environmental Category

B - Limited

Previous Events

Approved : Mar 20, 2008
Signed : Jun 26, 2008
Invested : Dec 29, 2008

Project Description

The project consists of the upgrade and expansion of Idea Cellular Limited’s cellular telephone network in India. Idea Cellular (Idea or the company) is seeking financing to complete its FY2007-09 capital investment program which consists of:

- strengthening and expanding the company’s existing GSM mobile network;
- launching operations in the new telecommunication service areas of Mumbai and Bihar; and
- installing and maintaining a National Long Distance (NLD) network.

With the completion of the project, Idea’s network will cover approximately 70% of India’s total mobile subscriber base.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	100.0
Equity

Development Impact

Some of the development impact highlights of this project are as follows:

- Expand access to telephony in underserved and rural areas:

Rural teledensity in India currently stands at around 5%, as compared with approximately 30% in urban areas. Through this project, Idea will expand its existing network into semi-urban and rural areas.

- Expand access to telephony in frontier states, e.g. Bihar:

Bihar is one of the poorest states in India, with close to 50% of the population living below the poverty line and a mobile penetration rate of about 8%. Through this project, Idea will extend its network into Bihar.

- Enhance competition:

This project will further enhance competition in India’s mobile telephony market, leading to increased quality of services and lower prices for consumers.

- Increase employment:

Idea currently provides direct employment for 4,700 people and indirect employment for considerably more people through its distributor network. As Idea expands it operations both within existing circles and into new areas, quality jobs will be created for its suppliers and distributors.

IFC’s role and additionality in the Project are as follows:

- Mobilization of long term funding from international commercial banks:

IFC will assist Idea by mobilizing up to $150 million of additional funding from international banks in a B Loan syndication.

- Provision of long-term financing:

IFC will be providing the longest tenor debt available to Idea. This is particularly important given the very sizeable capital expenditures planned over the next several years, and the long payback periods of mobile projects in low tariff countries such as India.

- IFC Advisory Services support for Shared Phone Program:

Idea has initiated discussions with IFC regarding the design and implementation of a Shared Phone program that aims to spread connectivity to underserved populations in rural and low income urban areas of India. This program is patterned after the Village Phone programs in Bangladesh, Uganda and Nigeria.

- Knowledge sharing on other initiatives:

IFC’s knowledge and experience in the sector is of interest to Idea, especially our experience with the new business models the company is developing. In addition to the Shared Phone program, Idea seeks to leverage IFC’s knowledge, experience and relationships with other operators and industry groups to develop new initiatives around increasing rural access and e-applications in the health care and banking sectors.

This project involves the upgrade and expansion of a cellular network, with construction and maintenance of cellular tower sites and related facilities. The key environmental and social issue associated with the project is implementation of a formal, integrated policy and procedures for environmental, health, safety, and social management, including labor and working conditions of both employees and contractors. The nature of the company’s operations is such that no major adverse environmental or social impacts are expected to result from the project, and it will be possible to avoid or mitigate any limited adverse impacts that might result. As a result, it has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects.

Contacts

For Inquiries About the Project, Contact

Mr. AJS Jhala
Windsor
5th Floor, Off CST Road,
Near Vidya Nagari, Kalina
Santacruz (East),
Mumbai – 400 098
India

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

Board Approved IFC Investment

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Expected Development Contribution

Environmental and Social Issues - Category

Press-Release

Related ESRS/ERS

Similar Projects

Contacts

Disclaimer