Two financial institutions have agreed to a financing package of up to $205 million to upgrade Tigo El Salvador's broadband infrastructure.

The loan from Banco Latinoamericano de Comercio Exterior (Bladex) and the Inter-American Development Bank's private sector business unit (IDB Invest) will also be used to improve the capacity and quality of Tigo's mobile infrastructure and refinance maturing debt.

The package includes a $150 million loan in which the banks will contribute $75 million each. In addition, Bladex will contribute a $30 million revolving credit facility and a $25 million digital discount facility.

The revolving credit line will be earmarked for the acquisition of specialized equipment, while the digital discount line will finance the sale or lease of smartphones and digital services to customers, expanding access to mobile broadband, especially for middle- and low-income users.

According to the banks, a sustained increase in data traffic is expected, making the expansion and modernization of network infrastructure essential. The financing will facilitate access to digital education, telehealth, and e-commerce for underserved populations by strengthening broadband services.

Tigo El Salvador is the Salvadoran subsidiary of the Luxembourg-based Millicom group. It began operating in the early 1990s as Telemóvil El Salvador and adopted the Tigo brand in the early 2000s with the introduction of GSM technology.

The company is the leading mobile operator and provider of broadband Internet and cable television in El Salvador.

In 2019, Tigo committed to a five-year, $500 million investment to develop the country's digital infrastructure with a special focus on the development of its 4.5G network.

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