28106 - O3B Networks Limited

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Summary of Proposed Investment

Project Number

28106

Company Name

O3B NETWORKS LTD

Date SPI Disclosed

Sep 14, 2010

Country

World Region

Industry

Telecommunications and Technology

Projected Board Date

Oct 21, 2010

Status

Completed

Sector

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

Department

TMT, Venture Capital & Funds

Environmental Category

B - Limited

Previous Events

Approved : Oct 28, 2010
Signed : Nov 12, 2010
Invested : Dec 6, 2010

Project Description

O3b Networks Ltd. is a greenfield project company to manufacture, launch and operate a Medium Earth Orbital (MEO) Ka-band satellite constellation that will provide broadband connectivity and backbone services to emerging markets worldwide. Thanks the satellites’ proximity to earth, its innovative steerable spot beams and its equatorial orbit O3b will provide high quality, low cost internet connectivity at any location between 45 degrees latitude North and South.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	70.0
Equity

Development Impact

Increased and affordable access to communications and data services in emerging markets, in particular in land-locked countries and in remote areas; Combining O3b's whole-sale prices (which are 50 - 80% below current levels) with open-access and competitive retail markets is expected to lead to higher quality access at sharply lower cost to the end-user in emerging markets. It is estimated that in those markets about 50% of access costs is related with international connectivity; It is estimated that the Project has the potential to reduce end-user broadband access costs by more than 70% in remote areas or land-locked countries of Africa.

IFC’s Investment experience in emerging markets in general and in the telecommunications and broadband sectors in particular will add value to O3b in its emerging market operations. Leading role in arranging the financing from a group of Development Institutions Senior Commercial and Subordinated Loans with a group of DFI's. The potentially high development impact of this project attracts a number of DFI's, who would welcome IFC's leadership role in appraising and structuring this complex transaction, in particular the mezzanine tranche. Long term financing which is not readily available from commercial financial institutions.

The key environmental and social issues associated with the project are management by O3B of its key contractors, particularly their procedures for the management of hazardous materials, waste, and launchings and end-of-life disposal of satellites; and O3B’s screening and selection of teleport sites. It has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects. As a condition of IFC’s investment, O3B will commit to developing and implementing a Social and Environmental Management System and an Action Plan for ensuring that all relevant social and environmental risks and impacts are managed as appropriate. Specific information about how risks, impacts and opportunities will be addressed by O3B is summarized in the Environmental and Social Review Summary for the project.

Contacts

For Inquiries About the Project, Contact

Mr. Baker Yanicelli O3b Networks Limited St. John’s Manor Offices Le Neuf Chemin St. John, JE3 4EH Jersey, Channel Islands Tel: 44 774 776 7510 Email: baker.yanicelli@O3bnetworks.com

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: 202-974-4384E Mail: Webmaster

Local Access of Project Documentation

Mr. Baker Yanicelli O3b Networks Limited St. John’s Manor Offices Le Neuf Chemin St. John, JE3 4EH Jersey, Channel Islands Tel: 44 774 776 7510 Email: baker.yanicelli@O3bnetworks.com

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.

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