Comcel Offers US$45mn in Commercial Papers

Colombian mobile operator Comcel, a unit of Mexico's América Móvil, offered 100bn pesos (US$45mn) in commercial papers on Tuesday, the company said in a statement to the country's financial regulator Super Financiera.

The 90-day papers carry a maximum yield of 8.4% and the proceeds of the offer will be used for working capital.

The papers are part of a debt program approved in May 2006, which also included 150bn pesos in 90-day commercial papers that were issued last November.

Comcel's commercial papers carry a DP1+ rating from agency Duff & Phelps de Colombia (DCR). DCR also said it would maintain its AAA rating on Comcel for three ordinary bond issues worth a total of 1.7tn pesos, according to a DCR research note.

The ratings for the company reflect the good operational and financial performance and competitive position of the company, which had a 64% share of the Colombian mobile market in September 2006, according to DCR.

Comcel has shown solid subscriber growth, maintaining a yearly average of 66% between 2000 and 2006 when the subscriber base reached 19.5mn.

Operational growth has also been accompanied by investments in its network and new commercial strategies that DCR said have allowed Comcel to add new clients at reduced costs."

Posted to the site on 21st February 2007