IDB Invest Mobilizes Financing to promote the shared telecommunications infrastructure market in Ecuador
IDB Invest, a member of the IDB Group, has mobilized a US$36.8 million financing to promote the shared telecommunications infrastructure market in Ecuador with Phoenix Tower International (PTI) one of the world’s fastest growing telecommunications infrastructure companies.
The deal involves the mobilization of US$25 million in funding from Proparco, a Development Finance Institution partly owned by the French Development Agency and private shareholders, and US$11.8 million from CIFI, a leading non-bank financial institution in infrastructure and energy financing in Latin America and the Caribbean.
This successful mobilization leverages the strong track record of collaboration between IDB Invest and Proparco since signing a co-financing framework agreement in 2017. The project will fund new capital expenditure opportunities, primarily for new distributed antenna systems opportunities and fulfills the initial financial plan for which IDB Invest provided a US$80 million loan to PTI to foster the independent market for telecommunications infrastructure in Ecuador and promote a more efficient development of this sector in the country. The transaction will help consolidate a business model based on the shared use of telecommunications towers in the Ecuadorian market.
The project is also expected to improve the sector's productivity, since mobile network operators will be able to develop their mobile networks more efficiently and economically, taking advantage of the project's existing infrastructure. It will also contribute to reducing the connectivity gap in Ecuador, through the expansion of mobile broadband networks and the reduction of operator costs.
This deal potentially contributes to four of the United Nations Sustainable Development Goals (SDGs): End Poverty (SDG 1), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (OSD 9), and Partnerships for the Goals (SDG 17).
About IDB Invest
IDB Invest, a member of the IDB 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 companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Phoenix Tower International
Phoenix Tower International (PTI) owns and operates in excess of 12,500 towers, 986 km of fiber and over 80,000 other wireless infrastructure and related sites throughout the United States, Latin America and the Caribbean, and Europe. PTI was founded in 2013 with a mission to be a premier site provider to wireless operators in high-growth markets, and has been one of the world’s fastest growing telecommunications infrastructure companies since its inception. PTI's investors include funds managed by The Blackstone Group Inc. and John Hancock.
PROPARCO is the private sector financing arm of Agence Française de Développement Group (AFD Group). It has been promoting sustainable economic, social and environmental development for over 40 years. PROPARCO provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America and the Middle-East. Its action focuses on the key development sectors: infrastructure, mainly for renewable energies, agribusiness, financial institutions, health and education. Its operations aim to strengthen the contribution of private players to the achievement of the Sustainable Development Goals (SDGs) adopted by the international community in 2015. To this end, PROPARCO finances companies whose activity contributes to creating jobs and decent incomes, providing essential goods and services and combating climate change. For a World in Common.
Founded in 2001, CIFI has distinct experience in the sector, as it has participated in funding more than 200 infrastructure projects that have played a key role in the development of the Region. CIFI is the leading non-bank financial institution in middle market infrastructure and energy financing in Latin America and the Caribbean. The value of these loans’ amounts are over US$1.7 billion dollars. With an unparalleled level of specialization within the market CIFI is the benchmark in its scope of action. The profile of the shareholding group, composed of commercial banks, multilateral institutions and sovereign funds, is unique in the industry and provides a greater syndication ability when it comes to capturing funding.