Broadband has been called the indispensable infrastructure of the 21st century, just like electrical grids and railroads were in earlier centuries. In recent years, Latin America and the Caribbean have made progress in terms of connectivity, but there are still gaps between and within countries. To help close these differences, IDB Invest is committed to supporting the development of telecommunications in the region.
In 2018, an example of that commitment was long-term financing in local currency for Millicom, a telecommunications company in various Latin American countries. This involved a private debt placement, under which IDB Invest fully subscribed a bond for 144 billion Colombian pesos (approximately $50 million) issued by Millicom.
The company will use the funds to modernize and expand its 3G and 4G networks in Bolivia, Colombia, Costa Rica, El Salvador, Honduras, Nicaragua and Paraguay.
Broadband has been called the indispensable infrastructure of the 21st century.
IDB Invest is considering an investment of up to US$ 50,000,000 in a private placement of a note denominated in Colombian Pesos (COP) with interest payable in US dollars but indexed to COP, that may be issued by Millicom International Cellular, S.A., a multinational company with significant revenues coming from Latin American countries (LAC).
Proceeds from the note would be used by the Company for, amongst other purposes, regional capex and general corporate purposes in IDB Invest’s regional member countries (“the Project”).
IDB Invest's commitment to purchase the note would be subject to certain conditions being met, including the Company agreeing to comply with IDB Invest's environment and social policies whilst IDB Invest is a noteholder.
Addendum to Millicom’s disclosure - March 20, 2018:
Previous amount: US$80 million
New amount: US$50 million