The Project is sponsored by MIC. Founded in 1990, MIC is a worldwide leader in emerging markets mobile telecommunications with shares traded on the NASDAQ and Stockholm stock markets. As of May 4, 2010, MIC’s market capitalization was approximately US$9.4 billion and its long term corporate family debt rating was Ba2 along with a senior unsecured rating of B1 by Moody’s. MIC’s strategy is to focus on countries with small penetration levels via low cost pre-paid services. The Sponsor has operations in over 13 countries in Latin America and Africa. MIC has a relationship with IFC for over 20 years with investments in Africa, Asia and Latin America. In 2006, MIC bought 50% + 1 share of the Company from its original shareholders ETB S.A. ESP and Empresas Públicas de Medellin S.A. ESP (“EEPPM S.A ESP”) and re-launched the Company under the TIGO brand. Founded in 1955, EEPPM S.A ESP is a public company that provides public services such as water and gas and it is property of the city of Medellín. It is also the second largest company in terms of assets after Ecopetrol, the largest and primary oil and gas company in Colombia. In 2006, EEPPM S.A. ESP divested its telecommunications subsidiaries under the name UNE S.A. ESP. As for ETB S.A. ESP, it is the largest provider of local telephone services and DSL internet access in Bogotá, Colombia. It also offers subscription TV through an alliance with Direct TV. Although ETB S.A. ESP is listed in the Colombian Stock Exchange, its major shareholder is the city of Bogota, which is an IFC client. As of May 4, 2010, ETB S.A. ESP is still engaged in the process of finding a strategic partner, an exercise it began in the second half of 2009.

Total Project cost is estimated at $197 million equivalent, mainly for capital expenditures from which the Company is expected to obtain an amount of $120 million equivalent from multilateral, international and local banks with the remaining $77 million equivalent from internal cash generation. The proposed IFC investment is a senior loan of up to $40 million.

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity

* These investment figures are indicative

The headquarters of TIGO are located in Bogota, Colombia.

Affordability & Accessibility: TIGO targets the mass market, and has driven the market in terms of tariff reductions, critical for improving penetration in a country where 49.2% of population is below the poverty line. Coverage: TIGO has contributed to a wider availability of mobile services in the country. A portion of TIGO’s capital expenditures is allocated to increasing geographical coverage, one of its disadvantages compared to Comcel and Movistar. The Company’s capital expenditure program aims to expand coverage to 95% of municipalities. Wireless broadband offering: TIGO is seeking associations with other important companies that might help to offer a more comprehensive product offering. It recently joined UNE S.A. ESP to add postpaid mobile telephony to UNE S.A. ESP 's residential fixed line clients. TIGO has also launched together with UNE S.A. ESP a very competitive wireless broadband product using its 3G network.

Access to long term financing: Support Colombia’s smallest mobile Colombian operator in a key stage of its operations (investing heavily in increased capacity and Value Added Services). Without long term financing, TIGO would not be in the best financial position to fulfill its projected capital expenditure program, and to achieve expected results from its business plan. Resource Mobilization: IFC’s involvement will act as a stamp of approval that will enable the participation from additional financiers (local and foreign) interested in the project. Promote competition: The entrance of TIGO resulted in improved services, better coverage and lower costs, consistent with MIC’s strategy of targeting the base of the pyramid. While the other mobile operators are primarily focused on retaining subscribers, TIGO did not suffer subscriber losses in 2009 and is focused on growing its business. Knowledge Sharing: While MIC is already an established IFC client, there are still opportunities for knowledge sharing in a country with the characteristics of Colombia and local management could benefit from successful IFC experiences in other parts of the world.

IFC will assess during appraisal the company''s plans for managing the usual environmental and social (E&S) risks of mobile operators, with all due attention to labor and working conditions, in this project provisionally classified as Category B.