IDB Invest, a member of the IDB Group, participated in a guaranteed line of up to COP625,000 million (GBP 113 million) for the benefit of Tigo Colombia, a subsidiary of Millicom.
The loan will allow the deployment of telecommunications infrastructure in 177 localities that do not have access to mobile services with a broadband connection. Added to this is the upgrade of the mobile service from 2G and 3G to 4G in 340 municipalities in Colombia.
Last year, the company had anticipated that it would advance with Open RAN 4G networks in 362 rural sites, although it was not possible to confirm from official sources if it is the financing of that project.
Through this operation, IDB Invest will issue one or more letters of standby credit (CCSB) to eligible local banks, such as Bancolombia, to cover Tigo's obligations to cover guarantees issued in favor of the Ministry of Information and Communication Technologies (MinTIC) and the Single Fund for Information and Communication Technologies (FonTIC).
The guaranteed line will have an availability of ten and a half years and a tenor of up to two years for each letter of credit issued. This project seeks to increase access and connectivity to mobile broadband, in addition to increasing opportunities for the most vulnerable sectors of Colombia, helping to close the digital gap.
“At Millicom Tigo we are committed to continuing our investment to build digital highways throughout Latin America, which is essential to grow our economies and connect our communities to the digital world,” said Mauricio Ramos, CEO of Millicom. “We celebrate the fact that IDB Invest shares this vision with us.”
“Quality broadband connectivity has a direct and indirect impact on activity and competitiveness, facilitates job creation, and improves productivity in urban and rural areas. This project demonstrates IDB Invest's determined commitment to reduce the digital divide in the region and achieve sustainable and inclusive growth,” said James P. Scriven, CEO of IDB Invest.