IFC, a member of the World Bank Group, has committed to provide a BRL 80 million (US$25 million) financing to Phoenix Tower Participações S.A. to support the acceleration of its telecommunication towers footprint in Brazil.

Phoenix Brazil is a wireless infrastructure operator and this investment will support the improvement of coverage and affordability of telecommunications and broadband services, contributing to economic growth and inclusion in Brazil. It is majority owned by funds managed by Blackstone Tactical Opportunities. 

IFC’s long-term debt financing will support Phoenix Brazil to fund the acquisition and site construction program of tower assets. This will promote greater competition among tower companies, which lease tower space to telecommunications operators, enabling them to share infrastructure. The construction of additional telecommunication towers will allow mobile operators to expand the service in terms of both capacity and geographic coverage, while telecommunication towers sharing among operators will drive down the incremental cost of expanding coverage for carriers, therefore allowing operators to make the services more affordable.

According to studies referenced in a World Bank Group report, growth in broadband penetration has a positive effect on a county’s growth, with each 10% increase in broadband penetration contributing on average 1.38 incremental percentage points to its Gross Domestic Product. 

IFC has been investing in Brazil’s private sector since 1956 to address the country’s most critical development challenges, including those of the urbanization, social inclusion, competitiveness and productivity, and management of natural resources. To date, IFC has committed close to US$2.2 billion to support the telecommunication sector in Latin America. 

Mauricio Giusti, Chief Executive Officer of Phoenix Tower Participações S.A. stated:

“We welcome IFC’s financing as it will greatly support and accelerate the expansion of our footprint in Brazil. In addition, this investment demonstrates the confidence that IFC has in Phoenix Brazil as a strategic player in the tower business and endorses our capability to operate as one of the major players in the Brazilian market.” 

Guillermo Mulville, IFC Head of Telecom, Media and Technology Group for Latin America and the Caribbean, said:

“IFC is pleased to partner with Phoenix in this project. Supporting independent wireless telecommunication infrastructure operator is a key element of our strategy to promote better connectivity in Brazil, both in terms of quality and coverage. Phoenix Brazil’s footprint will support mobile cellular networks as well as wireless broadband and backhaul networks, hence improving the penetration of information and communications technologies, contributing to economic growth and inclusion in Brazil.”