Company name

Gigared S.A. and Gigacable S.A.

Project number

12345-01

Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

E&S category
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B

Country

Argentina

Sector

Telecommunications, Media and Technology

Status

Inactive

Disclosed date

04/04/2019

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

Projected board date
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10/04/2019

Approval date

N/A

Signed date

N/A

Sponsoring entity

N/A

Team leader

Arauz, Gonzalo C.

Investment type

Financing requested

N/A

Syndicated amount

USD $ 10,000,000

Financing amount

USD $ 20,000,000

Currency

USD

Project scope and objective

The transaction consists of a loan of up to US$30 million to Gigared S.A. and Gigacable S.A. (“Gigared”), US$20 million of which will be financed by the IDB Group and, if agreed to by the parties, it may include mobilizing funds of up to US$10 million (to be financed by commercial banks)[1] (the Loan"). The Loan will be for a term of up to 7 years, including a grace period of 2 years, and will be used to finance (i) the expansion of its broadband network by connecting more homes and businesses in Buenos Aires and 6 provinces in the Northeast of Argentina (organic growth) and (ii) possible acquisitions (inorganic growth).



Gigared is a telecommunications group that provides cable television ("CATV"), fixed telephony and cable modem Internet services ("ISP") through  Fiber to the Home ("FTTH") urban networks wiring, Hybrid Fiber Optic-Coaxial Network ("HFC"), including triple play service (cable TV, Internet and fixed telephony) and connectivity and data center services for businesses (this activity, at its facilities in the Autonomous City of Buenos Aires). Gigared’s activities take place in the provinces of Entre Ríos, Santa Fe, Corrientes, Chaco and Misiones, and in the Autonomous City of Buenos Aires, Argentina. The laying down of fiber optics cables begins in Villa Ortúzar, Autonomous City of Buenos Aires, and extends along the coastline. The administrative facilities and central warehouses are located in the Autonomous City of Buenos Aires. 



 



[1]To be confirmed.




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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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Client files

This section provides the key environmental and social assessment documents produced by the client for this project.

GIGARED ESAP.PDF

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Contact information

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Client Contact

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PHONE NUMBER

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EMAIL

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EMAIL

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PHONE

+1(202)-566-4566

ADDRESS

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