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Financing Connectivity at Scale: How IDB Invest and Nokia Are Accelerating Digital Infrastructure

A financing solution that matches infrastructure spending with future revenues, helping operators expand access to digital services.

Woman holding a tablet in a rural area

 

Reaching the next wave of connectivity in Latin America and the Caribbean depends on faster deployment of secure, high‑performance networks and on financing that makes those investments feasible for operators. In 2025, IDB Invest partnered with Nokia to launch a $50 million regional financing facility. Its first beneficiary was Megacable, one of Mexico's leading telecommunications providers, which used the program to expand and modernize its network.

Starting in Mexico, the partnership is designed to scale across the region, easing payment terms and helping accelerate digital infrastructure investment.  

 

Why Digital Infrastructure Matters for  Regional Competitiveness 

Large segments in the region remain underserved by reliable internet. More than 200 million people still lack access, and many more experience limited coverage or unstable service, especially in rural and remote communities.  

When connectivity is weak, small firms struggle to reach customers, workers face barriers to build digital skills, and public services can't scale digital delivery. Investing in secure, resilient, and high-quality networks can unlock greater competitiveness across the region.

 

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The IDB Invest-Nokia Financing Facility  

In September 2025, IDB Invest and Nokia launched a $50 million financing facility designed to strengthen digital connectivity across the region. The facility is structured to enable Nokia to offer more flexible payment terms to communication service providers, making it easier to procure and deploy trusted network technology.  

Where it starts and how it scales. The program begins in Mexico, with the intention to expand to additional markets across the region.  

 

What’s Innovative: Financing That Aligns Investment With Cash Flows

Traditional funding models can slow network rollouts, especially when operators face tight liquidity and long payback periods. This facility aligns infrastructure spending with revenue generation, easing cash‑flow constraints and reducing reliance on conventional debt structures.  

In practical terms, the model helps operators upgrade capacity and expand coverage faster while reinforcing access to certified, secure technologies that support long‑term network integrity.  

 

Expected Development Impact: More Coverage, More Resilience, More Opportunity

By enabling faster deployment of high‑performance telecom infrastructure, the facility supports:

  • Broader access to reliable connectivity (including underserved areas), where deployment can lag behind urban centers.  
  • Improved competitiveness and innovation, supported by stronger digital infrastructure foundations.  
  • Greater resilience and security, as operators expand networks using trusted technologies and more robust standards.

      

Scaling connectivity requires structures that can be replicated across countries and partners. This facility reflects IDB Invest’s approach to mobilizing private investment and accelerating deployment so that connectivity becomes a platform for opportunity and growth across Latin America and the Caribbean.  

 

Authors

Edgar L. Cabañas

Edgar is an experienced professional in the field of structuring corporate finance, credit guarantees, supply chain finance, equity investments and project finance. He leads investment project teams within the Digital Economy at the Inter-American Investment Corporation (IDB Invest). In 2014, he received the prestigious IDB Ortiz Mena award by the Inter-American Development Bank for improving efficiency and corporate solutions of the Bank through an innovative long-term local currency financing product and in 2019 & 2020 the LatinFinance Social Infrastructure Deal of the year and IJ Global Telecom of the year respectively for the equity investment in Internet Para Todos (Peru). With solid experience in leading a diverse pool of professionals, client relationship management, business development, structuring, and managing complex, multi-million dollar financial transactions in Latin America in industrial sectors such as cement, agribusiness, pulp and paper, textile, and telecom. Before the IDB Invest, he held a number of positions at the Inter-American Development Bank (IDB) including Advisor to the Executive Director for Uruguay, Bolivia, and Paraguay, Alternate Executive Director at the Multilateral Investment Fund, Private Sector Country Coordinator and Senior Investment Officer at the Inter-American Development Bank. Prior to joining the IDB Group, he worked as a Corporate Relationship Manager and Head of the Stress Asset Management Unit at Citigroup. He holds an MBA and MPA from the American University of Paraguay, and Kansas State University, including postgraduate studies in conflict resolution & Negotiation Mastery at Georgetown University and Harvard University respectively.

Development Impact

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