telecom and media division
technology division

Telecom and Media

Areeba, Afghanistan
In June 2006, IFC signed a loan agreement for US$40 million and an equity investment of up to US$5 million in Areeba Afghanistan to support the construction and operation of a nationwide greenfield GSM digital cellular network. Areeba Afghanistan is owned by Investcom LLC (now a subsidiary of MTN), an international provider of mobile telecommunications services with operations in nine emerging markets in the Middle East and Africa, including Benin, Cyprus, Ghana, Guinea-Bissau, Guinea-Conakry, Liberia, Sudan, Syria and Yemen. Areeba won Afghanistan’s third nationwide GSM mobile license in September 2005 through a transparent and competitive award process. The license authorizes Areeba to provide domestic mobile telephony services and operate an international gateway. Areeba launched operations in Afghanistan in July 2006.

Avea, Turkey
In March 2006, IFC as the joint lead arranger, signed a loan agreement for $120 million with Avea, one of Turkey’s major mobile phone operators. Established in 2000, Avea is one of the leading GSM mobile phone network operators in Turkey. The company is owned by Telecom Italia, Turk Telekom, and the Is Bankasi Group. The loan will be used for the integration and expansion of Avea's GSM network.

Wataniya Telecom, Maldives
In November 2005, IFC signed a $20 million loan to Wataniya Telecom Maldives. In addition, IFC mobilized a $7 million parallel loan from the OPEC Fund for International Development, an inter-governmental development finance institution, which seeks to promote cooperation between OPEC member states and other developing countries. Wataniya Telecom Maldives is owned by Wataniya Telecom of Kuwait through its wholly-owned subsidiary, Wataniya International. Wataniya Telecom Maldives was awarded the second nationwide GSM license in the Maldives in February 2005 and launched its operation in August 2005.

Paktel Limited, Pakistan
Paktel Limited commenced operations in 1990 as one of two wireless telephony providers. It is currently 98.86% owned by Millicom International Cellular. In June 2006, IFC finalised a US$65 million loan package to Paktel. The loan is part of an overall fund-raising that will finance Paktel's expansion of its current network. The US$65 million IFC loan comprised of a US$35 million A loan and a US$30 million B loan that are co-financed with commercial banks.

Millicom Lao (TangoLao), Lao People's Democratic Republic
Millicom Lao is one of four telecommunication operators in Lao People’s Democratic Republic and the only one that is majority privately owned. The company was awarded its license in January 2002, and began commercial operations in 2003. It is owned 78 percent by Millicom International Cellular and 22 percent by the Ministry of Communication, Transport, Post and Construction of Laos. In May 2005, IFC provided Millicom Lao with a US$4 million loan to upgrade and expand the company’s cellular telecommunications network.

Telefonica Celular del Paraguay S.A (Telecel), Paraguay
In July 2005, IFC provided US$15 million to Telefonica Celular del Paraguay S.A. (Telecel), a subsidiary of Millicom International Cellular, to help upgrade and expand the company’s cellular
telecommunications network in Paraguay. Telecel is the leading telecommunications operator in Paraguay, offering nationwide mobile telephony services and Internet access, as well as public telephony services in rural areas. Telecel was awarded its license to provide mobile services in 1991, and it began commercial operations the following year. The company has since been awarded additional licenses to provide dial-up and broadband Internet access, as well as public telephony services.

Areeba (Scancom), Ghana
Investcom LLC is an international telecommunication group listed in Dubai and the London Stock Exchange. Investcom operates mobile telephony ventures in 8 countries in Africa and the Middle-East. As of November 2005, it counted four million subscribers. Areeba Ghana, a subsidiary of Investcom LLC, is Ghana's number one mobile operator with 1.4 million subscribers end of 2005. In May 2005, IFC committed US$40 million to Areeba Ghana to support the expansion of its GSM mobile network, especially in rural areas.

Celtel International B.V., Africa Region
IFC's has been a partner with Celtel since 1994 when IFC provided financing to Celtel's investee company in Uganda. Since then, IFC has made a number of investments to Celtel and its operating subsidiaries totalling USD 120 million: IFC has committed approximately USD 70 million to Celtel at the holding company level in a combination of financial instruments; and approximately USD 50 million in Celtel's operating subsidiaries including Uganda, the Democratic Republic of Congo, Sierra Leone and Zambia. Today, Celtel is an experienced telecommunications company with operations and investments in 14 African countries and more than 8 million subscribers. In 1994, Celtel was awarded IFC's inaugural Client leadership Award in recognition of its sustainable development achievements, including significant development impact, best practice corporate governance and contributions to the communities in which it provides service. Together with IFC, Celtel developed and implemented a corporate-wide environment and social management program, HIV Policy and AIDS Action Plan.

 MTN Networks (Dialog Telekom), Sri Lanka
In January 2004, IFC finalized agreements for a US$50 million loan package to MTN Networks, the country’s mobile telecommunications leader known by the brand name, Dialog Telekom. MTN Networks is a wholly owned subsidiary of Telekom Malaysia Group. Since being awarded its license in 1993, Dialog has become Sri Lanka’s largest mobile operator, with 2.56 million subscribers as at 30 June 2006 (representing more than 60% market share). In addition to its core mobile telephony business, Dialog provides international services, supporting an International Gateway infrastructure providing retail and wholesale international voice and data services under the brand name of Dialog Global. The company also provides Internet services through Dialog Internet-a fully-fledged Internet Service Provider (ISP). Dialog Telekom also operates Dialog SAT, a mobile satellite service.

NahuelSAt, Argentina
In 1995, IFC led the structuring and project financing of the first commercial satellite inLatin Americato be funded on a limited recourse basis. Total project amounted to USD 245 million and was structured as follows:

• USD 100 million from the sponsors;
• USD 30 million A loan from IFC;
• USD 115 million loans provided by different export credit agencies (Hermes, Coface and Sace).

TIM, Peru (now América Móvil Perú S.A.C - Claro)
In June 2003, IFC invested $70 million in TIM Peru S.A.C., the mobile subsidiary of Telecom Italia group in Peru. IFC’s investment helped TIM Peru to continue its expansion plans in order to extend coverage and provide a high quality communication network to its customers throughout Peru. TIM Peru acquired its license through a transparent auction in May 2000 and launched service in January 2001, as the third national cellular operator.

GrameenPhone, Bangladesh
GrameenPhone provides assistance in the expansion of rural connectivity in Bangladesh. In 1999, IFC extended a Senior Loan of USD 16.7 million and invested USD 1.57 million in preferred shares in GrameenPhone Ltd. which funded initial installation and operation of its GSM cellular phone network. GrameenPhone helped spur competition among existing operators and led to the rapid increase in cellular penetration and is the sole provider of telecom services to Village Phone operators (run by Grameen Telecom). GrameenPhone provides access to mobile phone services for 30 million people in rural areas of Bangladesh. IFC is currently considering funding GrameenPhone’s expansion plans.

Orange Cameroon, Cameroon
In 2002, IFC invested USD 13.8 million in OrangeCameroun to develop and operate a nationwide GSM cellular network. IFC and PROPARCO jointly provided a credit enhancement facility for FCFA29 billion loan (partial guarantee of 12.5% of principal and interest for USD 41.2 million, stand-by facility of USD 5.4 million and subordinated loans of USD 9.4 million) This was the first local currency financing for an infrastructure project inAfrica

OrangeCameroun re-shaped the telecom market in Cameroon:

• Addressed previously inadequate telecom network of state-owned operator.
• Spurred growth in cellular market and increased number of available telephone lines.
• Increased competition which led to substantial price reductions.
• Currently OrangeCameroun is the country’s largest telecom operator.

Telefonica CTC, Chile
In 1990 IFC arranged a USD 192 million financing to CTC, the privatized incumbent operator in Chile. The financing consisted of:

• USD 80 million A loan from IFC; and
• USD 92 million B loan from other international banks
• Proceeds were used for the modernization and expansion of the network.
• CTC was the second telecom operator to be privatized in Latin America, and the first Latin American ADR to be listed in the New York Stock Exchange. IFC was one of the advisors to CTC during the listing process.

Medi Telecom, Morocco
In 2000, IFC helped fund Medi Telecom’s build-out and operation of a nationwide GSM network in Morocco. (i) One of largest telecom project financings ever in Africa (USD 1.6 billion). (ii) Awarded African Telecom Deal of the Year by Global Finance Magazine in 2000.

In July 2004, IFC acted as Advisor and Joint Lead Arranger of Medi Telecom’s debt restructuring: (i) Original debt would mature in 2008 (USD 340 million B Loan) and 2009 (USD 66 million A Loan and USD 22million C Loan) (ii) Loan maturities extended by 3 years (1 year grace) until 2011 for B Loan and 2012 for A and C Loans (iii) Sponsors committed USD 50 million additional contingent equity (iiii) 15 of 16 participants from other international banks participated in the original B Loan.

MTN, Nigeria
In 2003, IFC co-led USD 395 million of loans to MTN Nigeria: (i) It was the largest project financing in telecom sector in sub-Saharan Africa (ii) IFC direct financing: USD 15 million equity investment, USD 35 million loan and USD 50 million standby loan. (iii) Deal awarded Deal of the Year by Project Finance Magazine in 2003.

In 2004, IFC provided additional USD 35 million loan to MTN Nigeria. Resources were used to help MTNN improve the quality of its existing network and accelerate the roll-out to ease congestion levels caused by steep subscriber growth.

TV3, Russia
In April 2004, IFC invested in TV3 Russia, a rapidly growing independent terrestrial television broadcaster. Funds were used to:

• expand distribution capabilities & broadcast infrastructure; and
• enhance program offering with wider range of family-oriented entertainment content.

Structure: (i) USD 7 million Secured Senior Loan (ii)USD 3.5 million mezzanine financing through warrants
Key success factors: (i) Experienced Sponsor and management (ii) Strong and growing advertising market (iii) Quality Board supervision and corporate governance oversight.

In 2005, TV3 returned to IFC with an aggressive acquisition strategy that required further financing. 
IFC responded quickly with a further USD 10 million Secured Senior Loan which allowed TV3 to move on time-sensitive assets which were crucial for its continued high-growth.

TA Orange, Thailand
In 2002, IFC established a relationship with True Corporation: (i) Provided guarantees and loans in the amount of USD 100 million. (ii) Supported True Corporation’s broader financing effort to acquire a mobile subsidiary, TA Orange’s network expansion and strengthening of capital structure.

In September 2004, IFC continued the long-term partnership with True Corporation, and was the Lead Arranger of TA Orange’s USD 200 million, 7-year offshore financing of the company’s expansion plan and refinancing: (i) Provided USD 33 million in local currency loans (ii) Secured mobilization of offshore funds from COFACE, KFW and West LB. 14 local banks provided USD 650 million in parallel long term loans through the roll-out of 2-year bridge financing.

CANTV and Movilnet, Venezuela
In 1996, to finance the modernization and expansion of CANTV's network, as well as, refinance existing debt, IFC arranged a USD 260 million term loan for the Company. The financing consisted of a senior and subordinated loan from IFC and a syndicated senior loan from a international commercial banks. Subsequently, IFC provided and mobilized expansion financing consisting of senior loans to Movilnet, CANTV's mobile subsidiary to finance its nationwide buildout and modernization of its network. Today, CANTV has over 3 million fixed lines and 400,000 broadband subscribers, and Movilnet's subscriber base exceeds 5.2 million subscribers, making it the second largest mobile operator.

Bharti Enterprises, India
IFC issued Partial Credit Guarantee in 2001, which enabled Bharti to successfully place three local currency bond issues for a total amount of USD 50 million equivalent. (i) IFC guarantee made long term bonds possible; maturity of longest bond in 2011 (ii) Procceds from bond issues enabled initial network build-out in three circles (Andra Pradesh, Karnataka and Punjab) (iii) IFC also invested USD 20 million in the equity of Bharti

Bharti has been very successful since then: (i) IPO in 2002 at INR45 per share; share price has since risen to INR 330; market capitalization of USD 15 billion equivalent (ii) Bharti expanded operations to become the leading Indian cellular operator with a nationwide footprint (23 circles) (iii) Strong financial performance and first class management at Bharti resulted in investment grade rating (AA) in India and attracts international investors (iiii)Recently, Vodaphone bought 10% of Bharti at a slight premium to market value.

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Technology

NeoPhotonics Corporation, China
NeoPhotonics Corporation, a Delaware incorporated company, designs, assembles, manufactures and distributes a complete line of active and passive optical components, modules and sub systems for broadband data networks. It is at the forefront of advanced active and passive components integration, positioning it for the expected rapid growth in fiber-to-the-home deployments across Asia and North America. With over 1,500 employees, over 90% based in Shenzhen, China, and estimated consolidated pro-forma sales of approximately $55 million in 2005, NeoPhotonics ranks among the top ten optical component players globally and among the three largest privately held companies in the industry. The company maintains its headquarters and state-of-the-art development facilities in San Jose, California and substantial R&D and manufacturing facilities in Shenzhen, China. In June 2006, IFC invested US$10 million in NeoPhotonics.

Softbank China Venture Capital (SBCVC), China
Established in 2000, Softbank China Venture Capital (SBCVC) is a leading venture capital in China. Headquartered in Shanghai, SBCVC promotes Silicon Valley-like entrepreneurship in China. SBCVC strives to help outstanding entrepreneurs build world-class high-tech companies and invest in companies in various stages including seed, early growth, expansion and pre-IPO. In March 2006, invested US$20 million in a limited partnership interest in the SBCVC Fund II - managed by SBCVC Management II, LP, which is wholly owned by the SBCVC.

Certifica, Chile
Certifica is a Chilean based Internet company that provides web traffic measurement as well as auditing and analysis for Internet sites across the Latin American region. Through an internally developed software, Certifica measures web tranternet sites, providing them with third party independent certification that the traffic figures are correct.

Chinasoft International, China
Beijing based Chinasoft International is a leading IT services, e-Business and software solutions provider for the PRC market. Listed on the HK stock exchange (8216.hk), the Company was spun out of CS&S China. With over 1,500 people employed, Chinasoft is well positioned to participate in the domestic Chinese growth opportunities, evident by the government and multinational clients the company has. In January 2006, IFC and Microsoft Corporation committed to jointly invest US$35 million to assist the company in taking it to the next level of growth. The investment by IFC and Microsoft marks the first investment by global players into this Chinese business.

CMS Computers, India
CMS Computers is a diversified technology services and products firm in India offering print, credit card, traffic and e-government services and solutions to companies in India and abroad. One of the largest technology firms focused on domestic IT services, CMS has been active in India since 1976.  IFC was the first institutional investor in CMS.

DQ Entertainment, India
DQ Entertainment is a leading animation outsourcing company in India providing animation production services to North American, European and Asian television, film and gaming companies. Co-investors include Indian private equity firms GW Capital, TDA Capital and IL&FS. DQE is currently operating out of several facilities in India and two contracted facilities in China and The Philippines and employs nearly 2,000 experienced and trained animation and gaming professionals. 

Egar Technology, Russia
Egar Technology is a financial technology company founded in March 2000, which seeks to tap the pool of qualified Russian software development talent to provide specialized capital markets software solutions (including off the shecustomized solutions and consulting services). Egar targets (i) trading and risk management departments of large banks; (ii) corporate treasuries; and (iii) specialized smaller and middle market financial institutions.

Glass Egg Digital Media, Vietnam
Glass Egg Digital Media is a digital media company incorporated in the British Virgin Islands, with operations in Ho Chi Minh City, Vietnam. Founded in early 1999, Glass Egg Digital Media targets three business segments: 2D animation and coding development; computer and video games; and educational software. To date, Glass Egg Digital Media has mainly focused on the video games and currently carries out all its development work in Vietnam.

HiSoft International, China
HiSoft International was founded in Dalian, China in 1996 and today is one of China’s premier IT outsourcing companies working with clients such as GE, IBM, Fujitsu and Nomura in Japan and the United States, employing over 1,400 people. HiSoft is the first Chinese company which was awarded a CMM Level 5 accreditation in 2003. IFC’s investment in October 2004, was part of a Series A US$20 million funding round undertaken with Granite Global ventures, Intel Capital and JAFCO Asia.  Part of the funding was meant to support acquisitions which it recently completed with the mergers of Ensemble Technologies and Teksen in Beijing, China.

Indecomm, India
Indecomm provides document management solutions and services to global financial and healthcare companies based on proprietary data capture/data management technology. Located in India, Indecomm focuses on mortgage processing, back office banking services and benefits administration. Co-investors include Westbridge Capital Partners, an Indian venture firm.

Information Business Systems Group, Russia
Information Business Systems Group Holding Ltd. (IBS) is the largest information technology company in Russia. IBS sells a proprietary line of computers in Russia through its Dealine brand, has incubated several successful software companies, and provides IT services to leading global and Russian clients. In 2005 IBS completed a successful ADR offering.

 IT Worx, Egypt
IT Worx is an Egyptian consulting and development firm with a small presence in the US. The Company provides IT services to Fortune 500 companies such as United Technologies and Vodafone.

KPIT Cummins Infosystem Limited, India
KPIT is a publicly listed technology firm in India focused on IT services to banking and manufacturing clients. Specialties include embedded software design and semiconductor design services. Co-investors include Cummins Engine and Lehman Brothers.

Meteksan Sistem, Turkey
Meteksan is the premier provider of IT services and support to the Government of Turkey and its agencies.  It is the largest  IT services company in the country with over 650 employees and over US$250 million in revenues.  IFC invested in Meteksan as it believes in the growth of the IT market of Turkey as the country prepares for EU accession and it is convinced that Meteksan has the ability to take an increasingly larger share of such growth. Meteksan is also helping the Government of Turkey become more efficient and transparent helping the country fulfill its accession obligations.

Nevis Networks, India
Nevis Networks is an early stage network security appliance company. Company headquarters are in California and virtually all product development activities are in India. Co-investors include Newpath Ventures, New Enterprise Associates and Blue Run Ventures.

NewPath Ventures, India
NewPath Ventures is a holding company that establishes and develops Indian subsidiaries in the fields of specialized custom semiconductor chip design, embedded software, and related software areas. Co-investors in Newpath include New Enterprise Associates, a global technology venture firm, and Chrysallis, an India-focused private equity firm.

 Novica United, USA
Novica United, founded in 1998 and headquartered in Los Angeles, is a web-based retailer of handicraft and artistic products, enabling a network of over 10,000 artisans located in emerging markets to sell their products (such as jewellery, paintings, leatherwork, etc.) to international buyers located mostly in the USA. Novica has created an international infrastructure that includes on-line retail, wholesale and catalog distribution channels served by a network of sources in developing countries. This allows Novica to eliminate high-cost, third-party distributors in the supply chain, dramatically reducing costs for buyers and increasing margins for artisans and Novica.

 ruNet Holdings Limited, Russia
ruNet Holdings Limited is a Russian information technology company. ruNet's mission is to build a leading IT services company in the CIS. TopS, ru-Net's primary operating subsidiary, provides a range of IT services including systems intelementation and IT consulting. ru-Net has also formed Tops Finacial Services (TFS) to provide specialized IT services to insurance and financial services institutions, and Ensys, to provide energy solutions. ru-Net is also a 36% owner in a leading internet portal.

P.T. Sigma Cipta Caraka, Indonesia
P.T. Sigma Cipta Caraka (Sigma) is an information technology services firm headquartered in Jakarta, Indonesia. The Company delivers hardware, software and technology solutions to the financial services industries to individuals and corporations, web site design, web site hosting and software development to both a domestic and international client base. In May 2001, IFC invested US$3.0 million for a 7% equity stake in the Company. IFC's equity recently increased to 9.2%, triggered by a missed EBITDA covenant.

Sonda, Chile
Sonda is the largest independent information technology company in Latin America, with annual revenues of over US$300 million. Sonda was founded in 1974 by Andres Navarro, who currently serves as its CEO and Chairman. With over 3,000 employees and offices most countries of the region, the Company's focus is to meet the full range of IT needs of Latin American companies, government agencies and international companies. Sonda offers solutions implementation, support, maintenance, outsourcing and suite of internally developed softwaresolutions. 

Spryance, India
Spryance provides medical transcription services to hospitals in the United States through a web-enabled process that allows trained staff in India to transcribe into written documents the voice recordings that doctors report on non-acute medical situations. The Company’s technology ensures rapid response times enables medical transcriptionists to work remotely from their homes. IFC was the first institutional investor in Spryance. Beeken Petty O’Keefe, a highly regarded health care-focused private equity firm, has also invested in Spryance.

 Software Ventures International Inc., The Philippines
Software Ventures International Inc. (SVI) is an information technology services company in The Philippines. SVI's core business has historically been offshore systems development and maintenance targeting US companies. The Company has also expanded to other IT enabled services such as Call Center services which include activities such as document management and billing transcription.

The Resource Group, Pakistan
IFC invested in The Resource Group (TRG) because it believes in the tremendous opportunity that off-shoring is giving developing markets like Pakistan. TRG acquires call center and business process outsourcing companies in the US and other developed markets and gradually moves a good portion of the work off-shore, capitalizing on the labor cost difference between markets like the US and UK and those like Pakistan and The Philippines. Within 18 months, TRG has moved from a start-up to a company with over US$180 million in revenues and over 8,000 agents.

VeriSilicon, China
Started in 2001 in Shanghai, China based VeriSilicon, is a leading ASIC design foundry. VeriSilicon's services range from SoC design and verification platform, IP, front-end and back-end design services, software design service and turn-key service including manufacturing, packaging, testing, and delivery. With additional offices in Silicon Valley and Tokyo, Japan, VeriSilicon employs over 140 engineers. In July 2005, IFC invested in VeriSilicon as part of a US$12 million Series B funding round. Other investors in the company include IDG Ventures, Intel Capital, HSBC Asia Private Equity and WI Harper.

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