Comcel Board Approves Up to US$100mn in Loans

Colombian mobile operator Comcel's board of directors has authorized the company to take out up to US$100mn in loans with a financial entity, local daily La República reported.

The objective of the América Móvil unit's move is to cover liabilities and increase operating cash. The loans will not harm Comcel's financial situation, the company said.

On February 24, Comcel issued US$200mn in ordinary 10-year bonds, up from the US$150mn it originally planned to place. Even so, the issue was oversubscribed.

In February, Comcel expressed its intention to invest some US$66mn in 2006 to expand its infrastructure, according to a report by local daily Portafolio.

Comcel closed 2005 with 13.8 million customers, more than double the 6.03 million customers of Telefónica Móviles in Colombia.

BNamericas.com"

Posted to the site on 16th March 2006