Guatemala Telecom JV Gets IFC Funds

Guatemala-based communication tower operator Continental Towers will receive a $120m IFC loan facility, the IFC says. The facility is divided into 2 senior secured tranches, a $50m, 6-year tranche taken by regional Infrastructure lender CIFI, HSBC and Banco General, and a $70m, 10-year tranche funded by IFC ($40m) and Netherlands-based development bank FMO ($30m). Interest rates are determined by a spread over Libor, with additional compensation for the 10-year tranche. This is IFC’s first transaction with Continental Towers, a joint venture between Guatemala’s Terra Towers and Credit Suisse, and funds its further expansion in the region. The investment will be used to double the number of towers that Continental Towers operates in Central America, as well as to finance its growth into Nicaragua. Continental Towers is present in Costa Rica, El Salvador, Honduras, Nicaragua and Panama.