Company name

(a) Telefónica de Costa Rica TC, S.A.; (b) Telefónica Móviles Panamá, S.A.; and (c) Telefónica Móviles Guatemala, S.A.

Project number

12453-01 / 12454-01 / 12296-02

Category C projects are those that are likely to result in very limited or no adverse environmental or social impacts or risks.

E&S category
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C

Country

Sector

Telecommunications, Media and Technology

Status

In implementation

Disclosed date

10/30/2018

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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11/30/2018

Approval date

12/03/2018

Signed date

12/13/2018

Team leader

Edgar Cabañas

Investment type

Financing requested

N/A

Syndicated amount

N/A

Financing amount

USD $ 14,000,000

Currency

USD

Project scope and objective

The Project consists of an uncommitted receivable purchase facility individually set up for Telefónica de Costa Rica TC, S.A.; Telefónica Móviles Guatemala, S.A. and Telefónica Móviles Panamá, S.A.  (“Telefonica Centroamérica” or “Movistar”) for up to US$14 million, US$5 million and US$5 million respectively (the "Facility") to sell mobile phone handset receivables originated by Movistar. The Facility will have an availability period of 48 months. The receivables have a repayment period of up to 24 months from the issuance date of the handset contract. Under the Facility, IDB Invest shall purchase, in its sole discretion, the mobile phone handset receivables.



The Project seeks to support the adoption and use of smartphones that allow the final subscribers of Telefónica Centroamérica to access to data services. Greater access to data services has a positive impact on economic development since broadband penetration facilitates the creation of jobs, promotes the creation of business, increases productivity, and positively impacts per capita growth. However, there are important barriers to deal with dramatic growth in data uses, one of which is the cost of acquiring equipment and technologies that allow end users to use Internet services. The proposed Project is one of the ways that IDB Invest will seek to address this barrier.


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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ENVIRONMENTAL AND SOCIAL REVIEW

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Contact information

For inquiries, comments and information requests about the project

Request information

Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Sergio Arroyo Arreola

POSITION

Chief Financial Officer

PHONE NUMBER

+507 378 7500

EMAIL

notificacioneslegal.ca@telefonica.com

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices