IDB Invest and Bladex Joins Forces to Boost Tigo El Salvador's Broadband for Digital Access

IDB Invest and Bladex Team Up to Transform Broadband in El Salvador

In a significant move to enhance digital inclusion in El Salvador, IDB Invest and Bladex have announced a comprehensive financing package amounting to $205 million aimed at Tigo El Salvador. A leading player in the telecommunications sector, Tigo is a subsidiary of Millicom International Cellular S.A., and this financial collaboration is expected to play a vital role in expanding broadband infrastructure across the nation.

Aimed Efforts for Connectivity

The funding plan includes a substantial loan of $150 million, which has been equally divided between IDB Invest and Bladex at $75 million each. In addition to this, the financing package incorporates a $30 million Revolving Credit Facility (RCF) and a $25 million Digital Account Receivables Discount Facility, both entirely provided by IDB Invest. Through the RCF, funds will be allocated for acquiring specialized equipment, while the Digital Discount Facility is designed to increase access to smartphones and digital services. This innovative approach will particularly target middle- and low-income populations, helping to close the affordability gap.

As the digital landscape continues to evolve, it is anticipated that demand for data services will surge in the upcoming years. Enhanced broadband services will not only improve productivity and connectivity but will also enable economic resilience by unlocking opportunities in digital education, telehealth, and e-commerce.

The Goals of the Partnership

By collaborating with Tigo, IDB Invest and Bladex aim to address the critical digital gap in El Salvador. The initiatives will provide essential technology and services to marginalized communities, fostering a more inclusive digital environment. As the project unfolds, it is projected to facilitate further access to various digital services, thus empowering individuals and businesses alike to engage in an increasingly online world.

About the Partners

IDB Invest plays a pivotal role in the realm of multilateral development, focusing on promoting economic progress through private sector investment in Latin America and the Caribbean. Committing over $21 billion in assets across various initiatives, IDB Invest is dedicated to financing sustainable projects that yield positive social and environmental impacts.

Bladex has remained a strong presence in the trade finance sector since its inception in 1979, being a bank established by central banks in Latin America. Its mission revolves around fostering economic integration within the region through providing vital financial solutions to businesses and institutions. With its roots in promoting trade finance, Bladex has cultivated a reputable standing within the global financial markets, aiming to deliver impactful results for its clients.

Tigo El Salvador: A Leader in Digital Services

Tigo El Salvador has been a front-runner in advancing digital evolution since its establishment in 1992. With an impressive mobile coverage exceeding 95% throughout the country, Tigo is synonymous with providing high-speed internet, innovative mobile solutions, and access to various multimedia platforms. The company's commitment to enhancing connectivity extends to businesses, where it offers tailored solutions designed to cater to diverse connectivity needs.

Moreover, Tigo’s financial services, particularly Tigo Money, have propelled financial inclusion, ensuring that Salvadorans have secure and tech-driven means to transact. With such initiatives, the company continually strives to push the boundaries of digital access in El Salvador.

As this financing initiative takes shape, the collaborative efforts between IDB Invest, Bladex, and Tigo El Salvador herald a new chapter in the country’s journey toward comprehensive digital inclusion, ultimately bridging the gap for future generations.