- The transaction consists in the subscription of a bond denominated in Colombian pesos and indexed to US dollars
- The operation seeks to improve connectivity in seven countries: Bolivia, Colombia, Costa Rica, El Salvador, Honduras, Nicaragua and Paraguay
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, subscribed a senior bond issued by the international telecommunications group, Millicom, for 144 billion Colombian pesos (COP) indexed to dollars and with a tenor of seven years. The use of funds from the bond issuance, equivalent to US$50 million, is to modernize and improve telecommunications networks and connectivity service in seven countries in Latin America and the Caribbean.
Through this operation, Millicom seeks to expand and modernize its networks to 3G and 4G, improving connectivity in Bolivia, Colombia, Costa Rica, El Salvador, Honduras, Nicaragua and Paraguay. Both individual customers and businesses will benefit from better quality of service, including mobile broadband connectivity.
The subscription of this bond, denominated in COP and indexed to US dollars, allows Millicom to diversify its sources of financing, mitigate its exchange rate exposure and strengthen its financial position. With this operation, IDB Invest is offering an innovative financing solution in local currency through the capital markets with a financial instrument that has been mostly used by sovereign and quasi-sovereign issuers or investment-grade companies.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of US$11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
Millicom is a leading provider of mobile and cable services dedicated to emerging markets in Latin America and Africa. Millicom sets the pace when it comes to providing high-speed broadband and innovation around Digital Lifestyle services through its flagship brand Tigo. At the end of 2017, Millicom employs approximately 19,000 people and serves approximately 51 million customers with mobile services, and has a cable footprint of more than 9 million homes passed. Founded in 1992, Millicom International Cellular SA is headquartered in Luxembourg and listed on the Nasdaq Stockholm under the symbol MIC_SDB. In 2017, Millicom reported revenues of US$6.0 billion and EBITDA of US$2.2 billion.