Financial structure of COTAS to be strengthened

The Andean Development Corporation (CAF) and the Santa Cruz Telecommunications Cooperative (COTAS) Ltda signed a $15-million loan agreement destined to strengthen the cooperative´s financial structure. The document was signed by CAF Executive President Enrigue García and COTAS President Ronald Castedo.

Emphasizing the importance of the agreement, CAF Chief Executive García said it would contribute to the development of infrastructure networks, which will improve Bolivian competitiveness by providing the country´s productive sectors with advanced technology and modern communications services for their activities.

The loan will finance COTAS investment programs for the next seven years. The cooperative will use the funds to modernize and substantially improve its competitive position in order to respond to the future challenges of the opening of the Bolivian telecommunications sector.

The operation consists of a direct loan with long maturities. With this loan to the telecommunications sector in Bolivia, the multinational lender is again supporting the opening, modernization and transformation of the country’s cooperatives.

The Andean Development Corporation is currently the main source of multilateral financing for the Andean Community, contributing in the last ten years over 50% of the funds granted by multilateral organizations. The Corporation is the Latin American issuer with the best risk ratings assigned by Moody´s, Standard & Poor´s and Fitch.

COTAS is an integrated telecommunications company which efficiently serves Santa Cruz department, offering integrated voice services over 180,776 installed lines and 133,045 lines in service. It also provides data, cable TV, Internet, beeper, mobile telephony and long-distance telephony services. Some of these services are also provided to the rest of the country, especially the La Paz-Cochabamba-Santa Cruz corridor. COTAS has total assets with a current value of $258,140,651 and net worth of $168,982,583. The cooperative was founded in 1960 to meet the demand for fixed telephony services.