IDB Invest Supports Torrecom to Boost Mobile Broadband Infrastructure
IDB Invest closed a loan for up to $30 million with a 10-year tenor to Torrecom Partners LP, one of the leading independent tower companies in Latin America. The loan will help Torrecom to build, acquire, maintain and lease its telecom cell tower portfolio in Chile, Colombia, Ecuador, El Salvador, Guatemala, Mexico, Panama, Paraguay and Peru. The project is part of a regional credit facility including co-loans of up to $40 million from Proparco and DEG.
The financing will support the deployment of mobile broadband infrastructure while increasing the productivity of existing telecom infrastructure through infrastructure sharing in the region.
Torrecom expects to expand its tower portfolio in the region to reach 1,700 towers by 2024 and commercialize available space on existing and new towers with different mobile network operators (MNOs) to increase the utilization rate of its tower portfolio.
In isolated rural regions, deploying infrastructure is costly because of low density and the extensive areas to be covered. Sharing towers will address the need for hosting more antennas to deal with a higher demand for mobile broadband services.
The project involves an innovative business solution where Torrecom provides the opportunity to increase the share of towers owned by neutral independent tower operators (ITOs). ITOs are relatively new in Latin America and the Caribbean where MNOs and their controlled tower subsidiaries still own more than 50% of total existing towers. In countries where Torrecom operates, MNOs and their subsidiaries own 65% of total existing towers.
This project is consistent with IDB Invest's strategic priorities since it will improve the levels of connectivity and digital adoption in the region.
This transaction is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Work and Economic Growth (SDG 8), and Industry, Innovation and Infrastructure (SDG 9).
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank 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 $16.33 billion in assets under management and 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.
Founded in 2010, Torrecom is one of the leading independent tower companies in Latin America with a portfolio of over 1,400 wireless infrastructure sites across Mexico, Guatemala, El Salvador, Nicaragua, Panama, Colombia, Ecuador, Peru, Paraguay and Chile. Torrecom continues to grow in the region through new tower and distributed antenna system development (BTS) for wireless carriers as well as opportunistic, value-added acquisitions of existing infrastructure portfolios. Torrecom’s management team has well over 100 years of experience with both tower company and carrier backgrounds. Torrecom is headquartered in Weston, FL with local offices in each of the ten countries in which it operates.