IDB Invest supports infrastructure expansion to bridge the digital divide in Colombia

IDB Invest PIC 1

On the left, James P. Scriven, IDB Invest, CEO. On the right, Mauricio Ramos, CEO of Millicom

On the left, James P. Scriven, IDB Invest, CEO. On the right, Mauricio Ramos, CEO of Millicom

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On the left, James P. Scriven, IDB Invest, CEO.  On the right, Mauricio Ramos, CEO of Millicom

On the left, James P. Scriven, IDB Invest, CEO. On the right, Mauricio Ramos, CEO of Millicom

On the left, James P. Scriven, IDB Invest, CEO. On the right, Mauricio Ramos, CEO of Millicom

IDB Invest supports infrastructure expansion to bridge the digital divide in Colombia

IDB Invest, member of the IDB Group, participated in a guarantee line of up to 625,000 million COP for the benefit of Tigo Colombia, a subsidiary of Millicom.

On the left, James P. Scriven, CEO of IDB Invest and on the right, Mauricio Ramos, CEO of Millicom

Through this operation, IDB Invest will issue one or more stand by letters of credit (CCSB) to eligible local banks, such as Bancolombia, in order to cover Tigo’s obligations to cover the guarantees issued in favor of the Ministry of Information Technologies. and Communication (MinTIC) and the Single Fund for Information and Communication Technologies (FonTIC).

The line of guarantee will have an availability of ten and a half years and a term of up to two years for each letter of credit issued. This project aims to increase access and connectivity to mobile broadband, in addition to increasing opportunities for Colombia’s most vulnerable sectors, helping to bridge the digital divide.

«Chez Millicom | TIGO, we are committed to continuing our investment to build digital highways across Latin America, which is essential to grow our economies and connect our communities to the digital world, ”said Mauricio Ramos, CEO of Millicom. “We celebrate the fact that IDB Invest shares this vision with us. “

“Quality broadband connectivity has a direct and indirect impact on business and competitiveness, facilitates job creation and improves productivity in urban and rural areas. This project demonstrates IDB Invest’s strong commitment to bridging the digital divide in the region and achieving sustainable and inclusive growth, ”said James P. Scriven, CEO of IDB Invest.

This line of guarantee will support the deployment of telecommunications infrastructures that TIGO will carry out in 177 localities which did not have access to mobile services with broadband connection. The operation also aims to upgrade the mobile service from basic 2G or 3G to high-speed 4G for 340 municipalities in Colombia.

Compliance with the Environmental and Social Action Plan

As a result of IDB Invest’s participation in the project, Tigo agreed to comply with the Environmental and Social Action Plan (PAAS). The company is taking appropriate measures to advance its efforts to adopt best practices in its operations, including developing an external complaints system and improving procedures for contracting with third parties to ensure that subcontractors appropriately manage environmental risks as well as occupational health and safety risks. .

IDB Invest, through its advisory services, is working with Tigo to maximize the impact of this transaction on rural populations. IDB Invest will help Tigo support the activation of digital agricultural productivity (such as climate monitoring and information services) for rural small businesses and the digital provision of opportunities in basic services, such as telehealth. or virtual education, for rural populations and those connected for the first time. The project will be implemented in phases, starting with a pilot in strategic rural areas and in alliances with key players in the region who have the capacity to connect locally and carry out the necessary activities.

This operation is expected to contribute to four United Nations Sustainable Development Goals (SDGs): end poverty (SDG 1), decent work and economic growth (SDG 8), industry, innovation and infrastructure ( SDG 9) and partnerships to achieve the goals (SDG 17).

On IDB Invest

IDB Invest, member of the BID Group, 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 businesses and projects to achieve financial results and maximize the region’s economic, social and environmental development. With a portfolio of $ 13.1 billion in assets under management and 385 clients in 25 countries, IDB Invest offers innovative financial solutions and advisory services that meet the needs of its clients in various industries.

On Tigo

Tigo is a leading provider of telecommunications services in Colombia with more than 10 million mobile subscribers, 1.7 million fixed residential customers and more than 3,800 employees as of December 31, 2020. Tigo is owned by subsidiaries of Millicom International Cellular, SA and Empresas Publicas de Medellin.

IDB Invest PIC 1
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