IDB Invest Supports Tigo in Colombia to Increase Mobile Broadband Service in 900 Rural Areas
IDB Invest closed a standby letter of credit, a flexible financial guarantee instrument, for 197.4 billion Colombian pesos (approximately $47.5 million) to Colombia Móvil S.A (Tigo), a major player in the Colombian telecommunications industry, to support the expansion and upgrade of telecommunication infrastructure in small municipalities in Colombia.
The project will provide mobile broadband to 915 rural areas that currently are without coverage, allowing them to enjoy the benefits of digital connectivity and contributing to close the rural-urban access gap.
The project will help improve mobile services, transitioning from basic 3G to 4G LTE broadband in 340 municipalities. This will allow retail and corporate customers to benefit from high-speed data connectivity, thus facilitating access to digital services, such as e-health, online education, telework and financial services.
IDB Invest is also providing advisory services to support the digitalization of small, rural and agricultural businesses located in Caquetá, in the Amazon region. This will improve their productivity, their conservation efforts and the sustainable use of ecosystems. Two local community groups that work in sustainable agricultural processes led by young farmers are already receiving training on how to use digital tools to improve their service offering.
Through this investment, IDB Invest keeps strengthening its commitment to boosting the development of the region with technology and innovation.
This project is expected to contribute to four United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Decent Work and Economic Growth (SDG 8), Industry, Innovation, and Infrastructure (SDG 9) and Partnership for the Goals (SDG 17).
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 $16.33 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Tigo identifies the operational integration of UNE EPM Telecomunicaciones S.A. (UNE) and Colombia Móvil S.A. E.S.P. (TIGO). The Brand integrates the company’s services and its subsidiaries Edatel, Colombia Móvil and Orbitel. Its mains shareholders are EPM E.S.PS and Millicom Spain S.L. Tigo delivers telecommunications services, Information and Communications Technologies and complementary activities in Colombia. The Company has consolidated itself as a leading company in the sector, with the mission of building digital highways to connect more and more Colombians.