Mexico, Nicaragua, and Guatemala to Increase Mobile Coverage with IIC Support
Investment in Torrecom contributes to telecommunication expansion in Latin America
Washington, D.C., August 5, 2014 – The Inter American Investment Corporation (IIC) approved an equity investment of up to US$8 million in Torrecom for developing and building cell towers that will help improve coverage in Mexico, Nicaragua, and Guatemala. The funds will also be used as working capital and to finance the company’s operations in general.
In addition, Torrecom will have access to the IIC’s advisory and training services, expertise and contacts in the region, additional financing resources, and best practices on corporate governance and environmental and social guidelines.
“We are very happy to have our growth backed by the IIC. Its experience and presence in our markets make the IIC an ideal partner,” said Maria Scotti, Torrecom’s CEO.
“This operation is expected to have a positive impact on wireless network development and coverage in Latin America. The construction and operation of towers by independent enterprises increases the sector’s efficiency and competitiveness and prevents the proliferation of unnecessary infrastructure,” said Aniceto Huertas-Corcelles, IIC senior investment officer in charge of the operation. “In addition to strengthening regional integration, it is estimated that the IIC investment will help create more than 200 direct and indirect jobs.”
Torrecom was founded four years ago to provide telecommunications services, mainly by building cell towers and leasing them to operators in Latin America and the Caribbean. It operates in Mexico, Guatemala, and Nicaragua through subsidiaries incorporated in those countries. Its main clients are Telefónica, Nextel, and América Movil.
The IIC will sell a stake of 50% of its investment to the China–IIC SME Equity Investment Trust Fund.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees, as well as innovative technical assistance, advisory services, and knowledge products. In 2013, the IIC approved 71 operations totaling US$415.4 million. Since its inception in 1989, the IIC has approved more than 800 direct loans to SMEs and financial intermediaries, for a total of US$5.21 billion. An additional US$3.01 billion has been mobilized through cofinancing and syndication agreements. For more information on the IIC’s activities, visit www.iic.org.
Contact: Aniceto Huertas-Corcelles
Telephone: +1 (202) 623-2036 in Washington, D.C.