IDB Invest led a $140 million financing deal for Torrecom Partners LP, the largest independent telecom tower operator in Latin America based out of the United States, to help expand digital infrastructure in Latin America and also connectivity, along with the level of competition across the entire region.
The project will add to Torrecom’s inventory of over 2,550 towers in Chile, Colombia, El Salvador, Ecuador, Guatemala, Mexico, Panama, and Paraguay as well as Peru, improving local connectivity standards.
Apparently, IDB Invest led and structured the $140 million long-term financing package with 5 international investors comprised of development finance institutions, funds, and commercial banks, including Allianz Credit Emerging Markets Fund, DEG, Proparco, and ILX Fund as well as BAC.
This contract is indeed a milestone in the execution of the Originate-to-Share business model of IDB Invest. It serves as a reflection of IDB Invest’s function as a bridge connecting international private-sector investors with the potential of Latin America and the Caribbean. IDB Invest applies deep regional understanding and novel financial structuring to turn development possibilities into viable monetary assets and attract global capital at scale.
The effort will encourage tower co-location to enhance network productivity and support the expansion of next-generation technologies like 5G. The project is anticipated to minimize costs, optimize utilization of resources, and permit mobile network operators to prioritize capital on core network improvements by means of the promotion of infrastructure collaboration.
As per the president of the IDB Group, Ilan Goldfajn, “Expanding access to robust digital infrastructure is key to driving productivity and unlocking new economic opportunities across Latin America and the Caribbean. Initiatives like this help accelerate innovation, strengthen competitiveness, and support sustained growth in the region.”
Maria Scotti, CEO of Torrecom, adds that “At Torrecom, we are committed to expanding the wireless infrastructure needed to strengthen connectivity and support the continued growth of digital services across Latin America. We see significant opportunities to extend infrastructure into markets where demand for connectivity continues to grow, and we look forward to working with IDB Invest to assist in advancing more accessible infrastructure in the region.”
It is worth noting that Latin America also saw major improvements in mobile broadband availability, with 4G coverage in 90% in most nations. But still 5G penetration is less than 15%, indicating the need to continue investing to remain competitive. Torrecom’s expansion will be critical to satisfying the increasing demand for data and fostering economic growth throughout the region.
In addition to financing, IDB Invest will assist Torrecom with advisory services in order to bolster its Social Engagement Plan.
This deal to expand digital infrastructure in Latin America highlights commitment by IDB Invest to improve connectivity and encourage investment from the private sector within Latin America.