IFC - International Finance Corporation

01/14/2022 | Press release | Distributed by Public on 01/14/2022 08:27

IFC mobilizes new investors to support ODATA expansion in Brazil and boost the digital economy

The investment will be made in the expansion of three datacenters

Sao Paulo, Brazil, January 14th,2022 - IFC, a member of the World Bank Group, has led a new tranche of financing to strengthen ODATA Brasil S.A.'s investments in its data centers in Brazil. The $30 million (approximately BRL 165 million) in finance will allow the company, a data center infrastructure provider with extensive operations in various market sectors, such as cloud and telecommunications, to expand its operations in the country.

This second stage will complement the initial line agreed in November 2020, comprising $30 million of IFC's own resources. The project represented IFC's first data center financing project. For this second disbursement, IFC mobilized two new investors: Itaú BBA and SMBC (Sumitomo Mitsui Banking Corporation).

The first and second tranche of financing will support the expansion of three data centers in the country, helping to revitalize and boost Brazil's digital infrastructure. With the largest economy and population in Latin America, Brazil has consolidated itself as the region's leading data center hub and generates great demand for connectivity. IFC's mobilization is expected to expand access to independent data center capacity in the country, sustaining the growth of the digital economy and expanding quality digital services for businesses and people.

"IFC, in addition to supporting the financing of ODATA's new data centers, has contributed to the company's achieving the best sustainability standards in the market, offering value to society and our customers. The arrival of the new funders, Itaú BBA and SMBC, provides even more financial robustness for ODATA to continue to expand rapidly in Brazil and Latin America, contributing to the improvement of digital infrastructure in the region," says Fernando Jaeger, ODATA's New Business Director.

"This project supports the growth of productivity and competitiveness in the Latin American data hosting services market. IFC's mobilization aims to promote greater digital resilience and a sustainable economic recovery in Brazil, in addition to meeting the population's demand for cloud services," says Carlos Leiria Pinto, IFC's Country Manager in Brazil.

After the COVID-19 pandemic, increased investment to prepare Brazil's digital infrastructure will be key to the country's economic recovery strategy, expanding information and communication technology-enabled services. The project will help in the continued development of a well-established class of data center infrastructure providers with a focus on wholesale services. With an established presence in Colombia, Mexico, and Chile, and expansion plans for Peru, ODATA is well positioned to take advantage of the demand for data center capacity in Latin America.

IFC is a key player in financing digital infrastructure in emerging markets and across the globe. In the past decade, IFC committed and mobilized $5.9 billion for telecommunications, media, and technology projects globally.

ODATA is a Brazilian data center services provider dedicated to supplying scalable, secure, and flexible IT infrastructures in Latin America. Founded in 2015, the company currently has six data centers, three in Brazil, one in Colombia, one in Chile, and one in Mexico. Specialized in Colocation, ODATA meets the growing demand for energy, space, and reliability from organizations from various sectors interested in advancing their digital transformation.

It is a Patria Investimentos company, one of the leaders in alternative asset management in Latin America, a pioneer in the Private Equity industry in Brazil. One of its shareholders is CyrusOne, a high-growth U.S. REIT, focused on building and operating world-class, operator-neutral data centers. It is one of the biggest international players on the market. For more information, visit http://odatacolocation.com.

About IFC
IFC-a member of the World Bank Group-is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.

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