Phoenix Tower International (PTI) today received an incremental $36.8m in syndicated debt financing which was arranged by IDB Invest, a member of the IDB Group, which includes the Inter-American Development Bank, to invest in shared digital infrastructure in Ecuador.

This additional debt brings Phoenix Tower’s total financing from IDB Invest to $175m+. Specifically, Phoenix Tower has received $116.8m in Ecuador and $58.5m in Bolivia from the group and its syndication partners.

Sources and Uses of Incremental Proceeds – Phoenix Tower

IDB Invest has sourced the incremental $36.8m of debt financing from two parties:

  • Proparco: private sector financing arm partly owned by the French Development Agency and private shareholders provides $25m in funding
  • CIFI: non-bank financial institution for middle-market infrastructure and energy financing in Latin America and the Caribbean contributes $11.8m in funding

Phoenix Tower will deploy the funds from the incremental debt financing into new capital expenditures, primarily for new distributed antenna systems (DAS).

Phoenix Tower’s Total IDB Funding – Since 2019

Ecuador – IDB Invest Financing

Phoenix Tower secured total long-term debt financing, arranged by IDB Invest, of $116.8m (originally $110m) to support its digital infrastructure growth in Ecuador. Firstly, this financing consists of an A-Loan from IDB of up to $80m, which Phoenix Tower secured in September 2020. Secondly, the financing includes co-loans of $36.8m (originally $30m), from Proparco and CIFI, which were arranged by IDB Invest.

Initial debt financing from IDB was provided to Phoenix Tower for its acquisition of 1.4k towers from Movistar Ecuador (Telefónica). Additionally, the financing is for growth capital expenditures, including the construction of ~100 new tower sites in the country.

Bolivia – IDB Invest Financing

In March 2019, IDB Invest provided a $58.5m loan, with a 10-year term, to Phoenix Tower for its expansion into Bolivia. Specifically, this financing comprises an A-Loan from IDB of up to $45m and a B-Loan of $13.5m (originally $15m). Notably, the $13.5m B-Loan financing came from the Inter-American Corporation for Infrastructure Financing (CIFI) for Latin America.

Initial debt financing from IDB was provided to Phoenix Tower for its acquisition of 600 towers from Trilogy International Partners. Additionally, the financing supports the company in building-out new towers for the main wireless carriers in the country.

IDB Invest – Overview

IDB Invest, a member of the IDB Group, is a development bank which promotes economic development in Latin America and the Caribbean through the private sector via financings for companies like Phoenix Tower International (PTI). The group has a portfolio of $12.1bn in assets under management (AUM) and 333 clients in 24 countries.

Phoenix Tower – Overview

Phoenix Tower owns and operates over 12.5k towers, 613 route miles (986 route kilometers) of fiber, and markets over 80.0k other wireless infrastructure sites. Specifically, this digital infrastructure portfolio spans 16 countries throughout Europe, the United States, Latin America, and the Caribbean.

Finally, Phoenix Tower’s equity sponsors are Blackstone Tactical Opportunities and John Hancock Life Insurance.

Adam Simmons is the Founder & CEO of Dgtl Infra. He started his career with an S&P 500-listed big box retailer, in an operations management role. Adam's entrepreneurial "itch" led him to start a 5G-driven company, focused on innovative retail solutions using augmented reality and shoppable videos, which was eventually sold to an advertising and consulting group. After, realizing the potential of 5G, Adam shifted his efforts towards investing in the "building blocks" of 5G - known as digital infrastructure, completing a number of strategic investments, buying cellular towers, data centers and fiber networks.

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