IDB Invest and Bladex Support Tigo El Salvador to Expand Broadband Infrastructure and Enhance Digital Inclusion

Rhea-AI Summary

Bladex (NYSE: BLX) and IDB Invest have jointly arranged a $205 million financing package for Tigo El Salvador to expand broadband infrastructure and enhance digital inclusion. The package consists of a $150 million loan (split equally between both institutions), a $30 million Revolving Credit Facility, and a $25 million Digital Account Receivables Discount Facility.

The financing will support Tigo's network expansion, infrastructure enhancement, and debt refinancing while facilitating affordable access to smartphones and digital services. The Digital Discount Facility will enable IDB Invest to purchase receivables from Tigo, supporting device financing for middle and low-income users.

Positive

• Strategic $205 million financing package secured for network expansion
• Partnership with major institutions IDB Invest and Bladex demonstrates project credibility
• Innovative financing structure includes provisions for affordable device access
• Project addresses growing data traffic demands and digital inclusion

Negative

• Increased debt load with $150 million new loan
• Execution risks in infrastructure expansion and modernization

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• IDB Invest and Banco Latinoamericano de Comercio Exterior (Bladex, NYSE: BLX), co-led a comprehensive financing package of up to $205 million for Tigo El Salvador to expand broadband infrastructure and support digitalization.
• The financing will help increase access to affordable smartphones and digital services, bridging the digital gap across El Salvador.

PANAMA CITY, July 28, 2025 /PRNewswire/ -- IDB Invest and Bladex are providing a financing package to Telemóvil El Salvador, S.A. de C.V. (Tigo), a subsidiary of Millicom International Cellular S.A., to support the expansion of Tigo's fixed broadband network, enhance the capacity and quality of its mobile infrastructure, and refinance maturing debt.

The package includes a $150 million loan, co-structured by both institutions, with $75 million contributed by IDB Invest and $75 million by Bladex, as well as a $30 million Revolving Credit Facility (RCF), and a $25 million Digital Account Receivables Discount Facility, both fully provided by IDB Invest. The RCF will support the acquisition of specialized equipment, while the Digital Discount Facility will finance the sale or lease of smartphones and digital services to clients, broadening access to mobile broadband, especially for middle- and low-income users. Through this innovative facility, IDB Invest may purchase receivables from Tigo and provide liquidity for device financing, helping close the affordability gap in handset access.

As data traffic is expected to surge in the coming years, expanding and upgrading network infrastructure is crucial to improving productivity, digital inclusion, and economic resilience. By enhancing broadband services, the project aims to unlock access to digital education, telehealth, and e-commerce opportunities for underserved populations.

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 $21 billion in assets under management and over 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. Visit our website www.idbinvest.org/en.   

About Bladex

Bladex is a multinational bank founded in 1979 by the central banks of Latin America and the Caribbean to promote trade finance and economic integration in the region. Headquartered in Panama, with representative offices in Argentina, Brazil, Colombia, Mexico and an agency in the United States, the Bank provides financial solutions to institutions and corporations throughout the region. Listed on the New York Stock Exchange (NYSE: BLX) since 1992 and on the Mexican Stock Exchange for more than 10 years, Bladex has consolidated its presence in the international financial markets. Its shareholder base includes central banks, government entities and banks from 23 Latin American countries, as well as institutional and private investors.

About Tigo El Salvador

Tigo, the commercial brand of Millicom, has been driving El Salvador's digital evolution since 1992. With mobile coverage reaching over 95% of the country, it leads in telecommunications and digital services. Tigo offers high-speed internet, mobile, cable TV, and access to top streaming platforms. It also offers exclusive sports content through Tigo Sports. Through Tigo Business, it supports companies of all sizes with tailored connectivity solutions. And with Tigo Money, it promotes financial inclusion by delivering secure, tech-driven financial services to all Salvadorans.

Contact:

Juan David Muñoz
VPA de Estructuración y Sindicaciones
Email: jmunoz@bladex.com
www.bladex.com      

View original content:https://www.prnewswire.com/news-releases/idb-invest-and-bladex-support-tigo-el-salvador-to-expand-broadband-infrastructure-and-enhance-digital-inclusion-302515340.html

SOURCE Banco Latinoamericano de Comercio Exterior, S.A. (Bladex)

FAQ

What is the total value of the financing package secured by Bladex (NYSE: BLX) for Tigo El Salvador?

The total financing package is $205 million, including a $150 million loan, $30 million Revolving Credit Facility, and $25 million Digital Account Receivables Discount Facility.

How is the $150 million loan structured between IDB Invest and Bladex?

The loan is equally split between IDB Invest and Bladex, with each institution contributing $75 million.

What is the purpose of the Digital Account Receivables Discount Facility in the Tigo El Salvador financing?

The $25 million facility will finance smartphone sales/leases and digital services, allowing IDB Invest to purchase receivables from Tigo to improve device affordability for middle and low-income users.

How will the Bladex financing impact Tigo El Salvador's infrastructure development?

The financing will support the expansion of Tigo's fixed broadband network, enhance mobile infrastructure capacity and quality, and help refinance maturing debt while improving digital inclusion.

What specific facilities are included in the Bladex and IDB Invest financing package?

The package includes a $150 million loan, a $30 million Revolving Credit Facility for specialized equipment, and a $25 million Digital Account Receivables Discount Facility for device financing.