Narayan AmmachchiTelecommunications provider Tigo has secured a $205 million financing package from IDB Invest and Banco Latinoamericano de Comercio Exterior (Bladex) to enhance and expand its fixed broadband infrastructure across El Salvador.
A subsidiary of Millicom International Cellular S.A., Tigo has yet to disclose specific plans for rolling out the network expansion. The company currently competes with Claro, Movistar, and Digicel, with its mobile coverage reaching approximately 95% of the country.
Industry analysts expect the new investment to help narrow El Salvador’s digital divide by strengthening mobile broadband connectivity — especially among low- and middle-income communities — and enabling wider smartphone adoption through receivables-based financing.
With El Salvador anticipating a sharp increase in data consumption, the initiative is poised to support the growth of digital education, telehealth, and e-commerce — critical areas for boosting national productivity and economic resilience.
As of January 2025, the country had 4.88 million internet users, representing an internet penetration rate of 76.9%. Over the previous year, the number of users grew by 347,000, marking a 7.7% increase.
The financing structure includes a $150 million loan jointly arranged by IDB Invest and Bladex, with each institution contributing $75 million. Additionally, IDB Invest is providing a $30 million revolving credit facility and a $25 million digital accounts receivable discount facility.
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