IDB Invest, the private sector business arm of the Inter-American Development Bank, has approved a loan of up to $100 million to Liberty Costa Rica to expand 5G network coverage and improve high-speed Internet access in the country.

The long-term financing includes a $65m loan and an additional uncommitted tranche of up to $35m. It also includes an uncommitted financing component, through syndicated loans or the issuance of B-Bonds, with participation from institutional investors.

The funds will be allocated to strategic investments to strengthen Costa Rica's digital infrastructure. This includes payment for the new spectrum granted by the Costa Rican government, the expansion of the fiber to the home (FTTH) network, and the deployment of the standalone 5G mobile network with Ericsson, announced in July.

The telecom operator's partnership with the Swedish multinational to activate this technology is expected to boost the growth of IoT devices and improve the mobile broadband experience for Liberty customers.

The IDB Invest loan is also expected to finance Liberty Costa Rica's working capital to accelerate the execution of these projects.

IDB Invest has said that this financing represents a "decisive leap" toward improving connectivity and competitiveness in Costa Rica, which will especially benefit rural communities with lower levels of connectivity.

Although Costa Rica was a pioneer in the region in offering mobile services, the country still faces significant challenges in closing its digital divide, especially in fixed connections.

This article was automatically translated from DCD's Spanish site and edited by a member of DCD's editorial staff.