Caribbean Operator Secures Expansion Funding

The Caribbean based GSM operator, Digicel Group has completed a US$408 million syndicated funding agreement led by Citigroup in New York. The funding provides for capital enlargement for Digicel and for the rapid acceleration of the Company's expansion strategy in the Caribbean.

Digicel operates in seven countries, including Aruba, Barbados, The Cayman Islands, Grenada, Jamaica, St. Lucia, St. Vincent and the Grenadines, and is the largest GSM mobile operator in the region with an average market share of 60%. The Company is currently planning to extend its footprint into other Caribbean countries and is currently one of five operators involved in a telecom license selection process in Trinidad and Tobago.

The funding agreement includes US$120 million in (new) debt capital to fund its growth and acquisition strategy. The Company has also streamlined its corporate structure, including restructuring debt and completing the buyout of minority equity holders including the I.F.C. (International Finance Corporation) through a bond offering partially tied to the Jamaican and Trinidad and Tobago capital markets.

Denis O'Brien, Chairman, Digicel, stated "This is a most significant milestone for Digicel. We are now strategically positioned to move to the next phase of our expansion."

"The syndicated funding which Citigroup has led involves major banks across the globe and it signals the exciting growth opportunities which exist for Digicel in an increasing number of rapidly developing markets."

Digicel, with a current workforce of over 1,000, has enjoyed rapid growth by aggressively winning significant market share in every market it has entered. The company's customer base grew 33% in 2004 and was recently ranked number one in customer satisfaction in Jamaica.

"This transaction provides Digicel with a financial profile that allows it to invest further in its existing operations as well as execute on further expansion plans throughout the region. The transaction was very well received by both international and regional investors in recognition of Digicel's impressive performance to date in the Caribbean region," said Julie Siskind, Citigroup's senior transactor for the financing."

Posted to the site on 8th March 2005