• Financing will enhance broadband coverage and quality in underserved areas, with a focus on the Amazon basin of Peru and Ecuador.  

   

• Project aligns with the IDB Group’s Amazonia Forever regional program, contributing to expanding digital infrastructure.  

   

WASHINGTON - IDB Invest structured a Revolving Credit Facility of $15 million for Fyco Global Services S.A. (Panama), Fycotelecom S.A. (Ecuador), Fyco Telecomunicaciones SAC (Peru), Fyco Holding Group (Panama), and their subsidiaries in the Dominican Republic and Colombia (collectively, “FYCO”). The transaction will enable FYCO to extend payment terms to small and medium-sized Internet Service Providers (ISPs) in Peru, Ecuador, Colombia, Panama, and the Dominican Republic, improving their liquidity and operational flexibility.

The funds will support the purchase of telecommunications materials and equipment, network deployment, and working capital needs. This will strengthen digital infrastructure and expand fiber optic connectivity in underserved areas, including the deployment of fiber backbone in the Loreto region of the Peruvian Amazon, aligned with a key pillar of connectivity in the context of the Amazonia Forever regional program. Also, by enabling the replacement of legacy broadband technologies with more energy-efficient fiber optic networks (FTTx), the financing will also expand access to high-speed internet.

The transaction responds to the region’s pressing need for better broadband infrastructure. Fixed broadband penetration in the eligible countries remains below advanced economy averages, with large gaps between urban and rural areas. For example, Loreto in Peru has one of the lowest penetration rates in the world, comparable to many Sub-Saharan African countries. At the same time, data traffic in Latin America and the Caribbean is expected to grow at an annual rate of 26% through 2030, underscoring the need for high-quality fiber networks to support the region’s ongoing digital transformation. Expanding broadband infrastructure is a prerequisite for bridging the digital divide, fostering economic growth, and enabling access to education, healthcare, and e-government services.

Beyond financing, IDB Invest will provide advisory services to help FYCO implement best practices in environmental, social, and health and safety management. This includes supporting the design and rollout of an Integrated Environmental, Social, and Health and Safety Management System (IMS), creating a dedicated management division, and developing operational procedures to ensure compliance with applicable regulations and the loan agreement. The agreement also includes technical assistance to develop a sustainability strategy, with an emphasis on recognizing its diverse workforce and stakeholders. These measures will strengthen FYCO’s sustainability standards and operational resilience while maximizing the project’s long-term developmental impact.

About IDB Invest

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of US$22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet its clients' needs across various sectors. Visit our website: idbinvest.org/en.

 About FYCO

FYCO is a Latin American company with more than 16 years of experience that acts as a strategic partner in the development and deployment of digital infrastructure projects in the region. The company supports broadband operators in the expansion and modernization of their networks, facilitating access to cutting-edge technological solutions. Its mission is to drive initiatives that strengthen connectivity and help close the digital divide in Latin America.