The Inter-American Investment Corporation (IIC), the private sector arm of the IDB Group, has signed a guaranteed 402 billion Paraguayan Guarani loan with Telefónica Celular del Paraguay S.A. (Tigo) to support broadband deployment in the country and boost productivity and economic growth.
This transaction reflects the IIC's commitment to fund more telecommunications projects in the region. The loan will support the company's long-term competitiveness strategy and its multi-year investment plan, focused on the deployment of technological infrastructure in Paraguay.
Specifically, the loan will serve to finance the expansion of the existing 3G network and establish a 4G LTE in Asuncion, Ciudad del Este, San Lorenzo and the surrounding areas. In addition, it will seek to improve access in rural areas, connect more households to the network and strengthen the network of business services. Tigo will also provide high-capacity Internet access to public health and education institutions, the national police and unattended areas and populations through fixed and mobile "telecenters".
Tigo's local currency financing package has an innovative structure; it combines the mobilization of resources from the Social Security Institute (IPS) with an international AAA credit guarantee from the IDB Group, which covers 100% of the credit exposure of the IPS. This collaboration mechanism between the IDB and the IPS allows the Institute not only to channel public savings towards private sector investments but also to diversify its short-term resources.
About the Inter-American Investment Corporation (IIC)
The Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. The IIC finances sustainable enterprises and projects to achieve financial results that maximize social and environmental development for the region. With a current portfolio of US$7 billion under management and 330 clients in 20 countries, the IIC works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.
Telecel S.A. began its activities in Paraguay in August 1992. Currently, under the Tigo brand, it provides mobile, cable TV and Internet services, seeking to be a digital inclusion engine and transformer of realities. Tigo is a company owned by Millicom International Cellular S.A., an international telecommunications and media company that offers a range of digital services to more than 57 million customers in 13 markets in Africa and Latin America.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
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