Expanding digital infrastructure and deepening capital markets can and should advance together. In 2025, IDB Invest subscribed to $50 million in a 10-year local-currency bond issued by Tigo Paraguay, supporting broadband expansion while setting a new benchmark for long-tenor corporate issuance in Paraguay’s capital market.

Why This Matters: Sustainable Connectivity Needs Local Capital

Reliable broadband is essential for productivity, inclusion, and competitiveness. But how that infrastructure is financed matters just as much as what is built. In smaller and developing capital markets, long-term infrastructure investment is often constrained by foreign exchange risk and limited access to long-term local financing.
 

Local currency capital markets can play a decisive role in closing this gap. When infrastructure providers finance in domestic currency and at longer maturities, they strengthen balance sheets, improve investment planning, and reduce vulnerability to external shocks, making connectivity expansion more sustainable over time.

What IDB Invest Financed: A Landmark Local Currency Bond Transaction

IDB Invest subscribed $50 million equivalent, denominated in Paraguayan guaraníes, to a 10-year bond issued by Telefónica Celular del Paraguay S.A.E. (Tigo Paraguay).
The transaction stands out for both its size and tenor, representing one of the longest dated corporate issuances in Paraguay’s domestic market and a significant milestone for local debt capital markets.

Anchor Investor Role

IDB Invest acted as an anchor investor, helping build confidence among market participants, mobilize additional investor interest, and demonstrate the feasibility of long-term local-currency financing for corporate infrastructure issuers.

These investments directly support access to digital services for households and businesses, reinforcing connectivity as a driver of economic development and social inclusion.

Beyond Financing: Embedding Sustainability and Cybersecurity

In line with IDB Invest’s approach, the transaction goes beyond capital provision. Action plans accompany the financing focused on environmental and social sustainability and cybersecurity, ensuring that network expansion aligns with international standards and responsible digital infrastructure practices.

This combination of financing and standards helps ensure that digital growth is not only faster, but also safer and more resilient.

The IDB Invest approach: Market Building Through Infrastructure Finance

This transaction reflects IDB Invest’s strategy of using its balance sheet to catalyze markets, not replace them, supporting projects that deliver development impact while strengthening local financial ecosystems.

What’s Next

As data demand continues to grow, sustained investment in digital infrastructure will be essential. Local currency capital markets can play an increasingly important role in financing that growth. IDB Invest will continue working with private-sector partners to structure transactions that expand connectivity, deepen markets, and build the foundations for a more connected and resilient Paraguay.