• 26 October 2022
    Dhiraagu Secures Financing from ADB and IFC to Enhance the Digital Infrastructure of Maldives
    Ref No: CS-GC/2022/PR-17

    In order to support Dhiraagu’s investment in digital infrastructure and strengthen connectivity across the Maldives, the International Finance Corporation (IFC), a member of the World Bank Group, together with the Asian Development Bank (ADB) have agreed to provide $55 million in financing across two facilities.

    The first facility amounting to $25 million will support Dhiraagu’s working capital and capital investment program to enhance internet experience including investment in 5G services and high-speed fibre broadband to more islands. This investment will also support the Dhiraagu’s Domestic Submarine Cable expansion project which will enhance our capacity to meet the increasing data needs of our customers.

    The second facility of $30 million will support Dhiraagu’s SEA-ME-WE 6 Submarine Cable System project, which will connect Maldives to the global super highway. This investment in a tier-1 submarine cable system is an important step towards making the Maldives a global digital hub and strengthening the digital infrastructure of the country. It will also help reduce latency, improve quality and reduce costs of Dhiraagu’s internet services.

    “We are delighted to be working with two major global development institutions, ADB and IFC, who are helping fund our major investment program to support the social and economic development of our nation. Securing this funding is an endorsement of the strength of the Company and our vision for the development of digital infrastructure in the Maldives. This investment has also played a pivotal role in establishing our Environmental, Social and Governance (ESG) function under which we are aiming to enhance our commitment towards achieving the UNDP Sustainable Development Goals” stated Ismail Rasheed, CEO & MD at Dhiraagu.

    Dhiraagu has also established an Environmental and Social Management System in compliance with IFC Performance Standards (PS) 2012 and ADB Safeguard Policy Statement (2009) with the aim of creating long-term stakeholder value through the implementation of a business strategy that focuses on the ethical, social, environmental, cultural, and economic dimensions of doing business. Apart from helping the company strengthen its environmental and social management system, IFC will also support Dhiraagu's efforts to close the current gender gap in its workforce, with a focus on increasing the number of women in technical roles through customized advisory support.

    “IFC’s investment in Dhiraagu to boost the digital infrastructure of the Maldives will be invaluable to help overcome the challenge of connecting people in one of the world’s most dispersed countries,” said Hector Gomez Ang, IFC's Regional Director for South Asia. “This investment will help diversify the economy by unlocking the digital delivery of key public and private services, allowing people living in the atolls to access education and healthcare. It will also help build resilience by enabling remote work and offers the potential to create more jobs in a country now heavily reliant on tourism. IFC is committed to helping the Maldives achieve inclusive and sustainable growth for future resilience.”

    “Mobile and internet connectivity is important for socioeconomic growth and development,” said ADB Private Sector Operations Department Director General Suzanne Gaboury. “It’s crucial for island nations like the Maldives, where public services are difficult to provide as the population is spread across numerous islands. This is ADB’s first private sector infrastructure financing transaction in the Maldives, which will help to deliver faster and more affordable internet connectivity and be a crucial enabler of private sector investments and regional connectivity.”

    Dhiraagu is committed to develop the digital infrastructure necessary for our island communities to engage in the digital economy and boost our economic competitiveness.

    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 2022, IFC committed a record $32.8 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

    About ADB
    ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.www.adb.org

    About Dhiraagu
    Dhivehi Raajjeyge Gulhun Public Limited (Dhiraagu) was established in 1988 as the country’s sole telecommunication service provider in the Maldives. The two substantial shareholders of Dhiraagu are, Bahrain Telecommunications Company B.S.C (Batelco) holding 52% of the shares, and the Government of the Maldives holding 41.8% of the shares. The remaining 6.2% of shares are held by the general public of the Maldives.

    Dhiraagu is the leading and largest digital and telecommunications service provider in the Maldives providing future proof digital and telecommunications connectivity that enables customers to get ahead in the digital future. They are the pioneers that ushered the country into the digital age and continue to lead the field by placing the premium value on customer experience and consistent innovation. For more info: www.dhiraagu.com.mv

    Contact Information:
    Phone: 3311121
    Email: [email protected]

    Issued by:
    Dhiraagu Investor Relations
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