The telco said it was seeking damages for a series of state measures that affected its investments in its subsidiary in Colombia, where it has a majority stake.

Spanish telecommunications company Telefónica announced Wednesday that the World Bank's International Centre for Settlement of Investment Disputes (ICSID) has ordered the Colombian government to pay it $380 million as part of an arbitration process.

"The Court has found that Colombia has failed to comply with its obligation to provide fair and equitable treatment to Telefónica's investments," the company said in a statement to Spain's National Securities Commission.

Colombia was also ordered to pay Telefónica's legal fees for the legal process that began in February 2018 and compound interest at a rate of 5% as compensation for the damages caused.

Telefónica said it was seeking damages for a series of state measures that affected its investments in its subsidiary in Colombia, where it has a majority stake.

"The dispute arose from the State's application of various measures to obtain the reinvestment of assets related to Telefónica's telecommunications business in Colombia," the company said in a statement.

ICSID did not respond to a request for comment from Reuters , although its website said the case was closed on October 2 in accordance with its arbitration rules.

A spokesman for Colombia's Ministry of Finance confirmed the arbitration.

Telefónica, which has begun a process of divestment in many Latin American markets, announced the start of talks with Millicom, listed on the New York Stock Exchange, to sell its stake in its Colombian unit for $400 million.