Dhiraagu has signed the second facility agreement with the International Finance Corporation (IFC) and the Asian Development Bank (ADB) to fund Dhiraagu’s investment in the SEA-ME-WE 6 (SMW6) Submarine Cable System. Under this agreement, USD 30 million will be facilitated for the project bringing the total funding from both organizations to USD 55 million.
Dhiraagu’s intriguing investment in SMW6 will connect the Maldives to the global internet superhighway which will in turn consolidate the digital infrastructure of the company and make the Maldives a worldwide digital hub. In addition to this, the submarine cable system will also reduce latency and improve the quality and cost of Dhiraagu’s internet services provided across the Maldives. Consequently, the nation can experience better connectivity in all parts of the country.
In 2022, Dhiraagu signed the first facility agreement of USD 25 million which supported Dhiraagu’s working capital and capital investment programme. This allowed the company to meet the increasing data and broadband demands of customers by expanding its 5G service and high-speed fibre broadband services to more islands in the country. Moreover, it also extended support to Dhiraagu’s Domestic Submarine Cable expansion project as well.
Speaking about the second facility agreement, CEO & MD of Dhiraagu, Ismail Rasheed said “We are delighted to sign this second facility with IFC and ADB which will support a critical investment for Dhiraagu, that will enable Maldives to be connected to the SMW6 global submarine cable system. As a member of the SMW6 consortium and co-owner of the system, Dhiraagu will have access to multiple internet data centres along the SMW6 route from Europe to Singapore.”
Speaking further he stated, “This is a significant development in strengthening our international diversity and improving digital connectivity across the Maldives, which fuels the socio-economic development of the nation. The collaboration with IFC and ADB has also given us an opportunity to strengthen our sustainability initiatives, and lead to a focused strategy on Environmental, Social and Governance (ESG) which will contribute to accomplishing our mission of enriching lives and empowering digital communities.”
“Digital connectivity has enormous potential, specifically in connecting the unconnected, creating better and more opportunities for people. IFC’s latest investment in Dhiraagu will enable widespread, fast, and reliable connectivity across the Maldives, leading to inclusive business growth and improving quality of life for all,” remarked Alejandro Alvarez de la Campa, IFC Country Manager for Sri Lanka and Maldives.
“Having access to mobile and internet connectivity is essential for socioeconomic progress, especially for island nations like the Maldives where the population is widely dispersed. This assistance, marking ADB’s first private sector financing of an infrastructure project in the Maldives, will help enable the provision of less expensive, faster regional connectivity in the country,” commented Suzanne Gaboury, Director General of ADB Private Sector Operations Department.