IFC grants a loan of US$60mn to Axtel to promote communications and digital connectivity in Mexico

By IFC

Mexico City, Mexico, December 6th 2023.  Axtel, a Mexican Information and Communication Technologies (ICT) company, announced the formalization of a US$60 million dollars loan from the International Finance Corporation (IFC), a member of the World Bank Group, for a period of seven years, linked to environmental and social commitments.

The long-term loan will allow Axtel to finance the strategic deployment of its fiber optic network to telecommunications towers and data centers and promoting the development of digital infrastructure in Mexico. The loan will also extend the maturity profile of its debt.

Armando de la Peña, General Director of Axtel, said: "We are pleased to announce this first investment from IFC. Their support is a fundamental piece in our fiber optic network expansion strategy with efficient equipment and innovative digital platforms, which allows us to implement information technology solutions to boost the development, productivity and efficiency of our clients in different sectors of the country".

Juan Gonzalo Flores, IFC Country Manager for Mexico, noted: "Projections indicate that nearshoring could generate additional annual exports in Mexico of US$36 billion in the next 7 years, which would generate between 2 and 4 million new jobs by 2030. Mexico must be able to provide the infrastructure that guarantees reliable digital connectivity to industries that benefit from nearshoring. As a result of this alliance, IFC reinforces its commitment to Mexico to provide the necessary investment and advisory tools so the country can fully take advantage of the nearshoring potential."

Adil Marghub, IFC Regional Head of Infrastructure for Latin America and the Caribbean, added: “IFC is excited to announce the beginning of a long-term relationship with Axtel, a market leader providing critical digital connectivity and digital transformation services in Mexico. This transaction aligns with the main pillars of IFC’s strategy in Latin America to boost productivity and increase digital connectivity. Axtel plays a pivotal role in addressing these themes by improving fiber connectivity to the overall digital ecosystem in Mexico with a focus on B2B. We look forward to supporting Axtel’s network expansion, enhancing access to quality digital connectivity.”

IFC is a leader in the telecommunications, media and technology sector in emerging markets. Since 2010, IFC has committed and mobilized more than $9 billion across the sector, including $2 billion in fiscal 2023 alone. IFC finances digital infrastructure with a focus on shared infrastructure models, such as broadband access networks open and neutral for operators, independent tower companies and data centers.

About Axtel

Axtel is a Mexican information and communication technology company that serves the enterprise and government segments with its brand Alestra, and the wholesale segment with its brand Axtel Networks (Axnet). Axtel adhered to the UN Global Compact in 2011, the world's largest social responsibility initiative. It has received recognition from CEMEFI as a Socially Responsible Company since 2008. Axtel shares, represented by Ordinary Participation Certificates, or CPOs, trade on the Mexican Stock Market under the symbol “AXTELCPO” since 2005.

About IFC

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org and www.ifc.org/energy.