30136 - Emerging Markets Communications, Inc.

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Summary of Proposed Investment

Project Number

30136

Company Name

EMERGING MARKETS COMMUNICATIONS, LLC

Date SPI Disclosed

Apr 14, 2011

Country

Africa Region

Industry

Telecommunications and Technology

Projected Board Date

May 16, 2011

Status

Completed

Sector

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

Department

WBG Digital and AI

Environmental Category

C - No Impact

Previous Events

Approved : Jun 21, 2011
Signed : Jul 18, 2011
Invested : Jul 27, 2011

Project Description

Emerging Markets Communications’ (“EMC” or the “Company”) provides mission-critical, end-to-end communications solutions to governments, non-governmental organizations (“NGOs”) and multinational corporations operating in remote regions of the globe. Specifically, the Company’s services include voice, data, email, video and broadband internet access and applications.

The project consists of (i) the scaling up and expansion, and (ii) the balance sheet strengthening, of EMC’s VSAT telecoms network serving isolated areas of emerging markets. EMC provides global satellite communication using a high quality, fully managed network. The Company began its activities in 2002.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	12.0
Equity	10.0

Development Impact

Improve productivity through connectivity: The impact of increased and affordable access to communications and data services is widely acknowledged, with far reaching benefits in terms of private and public sector productivity, including market information, education, tele-medicine and extending financial services to the frontier.

Increased coverage: EMC has the capacity to deliver fully managed, end-to-end solutions in difficult countries and regions where satellite technology is the best or only alternative.

Broader range of services: Further to basic data and voice, EMC can support more sophisticated applications, processes and corporate software solutions such as SAP and Oracle.

Enhance competition: Often, EMC is the only viable alternative to the incumbent telecomsoperator. Supporting EMC helps increase competition and provides comfort to many f its customers that sensitive communications will be handled with privacy.

Reduction in travel/carbon footprint: EMC’s Video-on-Demand solution to be deployed in 2011 will allow customers to collaborate with their colleagues, clients and suppliers without the need to physically travel in and out of remote locations.

Vulnerable ultimate beneficiaries: Clients in main vertical (development agencies / NGOs, accounting for 54% of revenues), directly target the base of pyramid, especially in Africa. These institutions’ reach would be limited without the services of specialized niche providers such as EMC.

Quick deployments: EMC has a custom-designed solution allowing fast, tactical implementation of communications links following natural catastrophes (i.e., most recently in the Haiti and Chile earthquakes). EMC''s personnel, a team of highly trained and experienced professionals, is available and ready to deploy and implement satellite services within 48 hours thanks to a stock of pre-staged equipment at regional offices across all continents.

Business continuity: Strategically located infrastructure ensures business continuity / disaster recovery through redundant links and ample data center capacity. Remaining operational during a disaster makes the difference between financial sustainability and extensive losses for any public or private corporation.

Niche sector: IFC will provide debt and equity resources to a relatively early-stage/high-growth company with still limited access to traditional banking sources. EMC operates in a specialized market segment, across multiple jurisdictions and with a focus in Africa, making it a challenge for traditional financiers.
Knowledgeable investor: IFC''s telecoms and emerging markets experience, its deep understanding of complex regulatory environments and its commercial contacts within EMC’s main verticals (i.e., development institutions and NGOs, corporations operating in Africa and telecom operators), makes it an ideal investor.
Catalytic role: IFC has mobilized FMO as a co-investor.

Financing support and Risk Management products: IFC is a long term partner providing a one-stop shop equity and debt solution. IFC will provide the Company with fixed rate debt exposure.
Corporate Governance: The entrance of 2 institutional investors (IFC and FMO) will strengthen corporate governance in anticipation of a potential IPO/Trade Sale.

Less environmental and social (E&S) risk, more energy efficiency, and less carbon emissions are involved in EMC''s low-impact services than in services provided by typical telecommunications projects. EMC has in place environmental and social policies and procedures that comply with IFC Performance Standards and it will be required to maintain those policies and procedures. EMC''s low-impact services involve low E&S risk; therefore, the project is classified as Category C according to IFC''s environmental and social review procedure.

Contacts

For Inquiries About the Project, Contact

Mr. Santiago Rossi, VP Finance
EMC Argentina
Tte. Gral. J. D. Perón 949, 14th Floor
B1640GNX
Capital Federal, Argentina

Guillermo Mulville (Team Leader)
Senior Investment Officer
Bouchard 557, 11th Floor
Capital Federal, Argentina
Tel: +54.11.4114.7206
Fax: +54.11.4312.7184

Jerry MaCauley (Transaction Leader)
Investment Officer
2121 Pennsylvania Ave, NW
Washington , DC 20433 USA
Tel: + 1 202 473 7338
Fax: + 1 202 974 4403

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Washington DC 20433
Telephone: 202-473-3800
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Local Access of Project Documentation

Mr. Santiago Rossi, VP Finance
EMC Argentina
Tte. Gral. J. D. Perón 949, 14th Floor
B1640GNX
Capital Federal, Argentina

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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