KINGSTON, Jamaica- Fresh off a $408 million investment earlier in the week, Caribbean wireless carrier Digicel Group announced its acquisition of a wireless carrier in Curacao. Digicel now has operations in eight Caribbean countries.
The value of the purchase of Curacao Telecom N.V. was not disclosed. Digicel said it plans to upgrade and expand the carrier’s network during the next three years. The Curacao carrier also offers international telephone and Internet services.
With a population of approximately 150,000 people, mobile penetration in Curacao is estimated at 75 to 80 percent, Digicel said.
Digicel said it plans to maintain and support the management and employees of CT through training and staff development programs.
Digicel said it completed a $408 million syndicated funding agreement led by Citigroup in New York.
Digicel is one of five operators involved in a telecom license selection process in Trinidad and Tobago.
The funding agreement includes $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 International Finance Corp. through a bond offering partially tied to the Jamaican and Trinidad and Tobago capital markets.
Banks involved in the new funding include Nordea Bank AB, Export Development Canada, Allied Irish Bank, Bank of Ireland, Deutsche Bank AG, Bank of N.T. Butterfield & Son Ltd., Trinidad and Tobago Unit Trust Corp., The Bank of Nova Scotia Ltd., National Commercial Bank and FMO Financierings-Maatschappij voor Ontwikkelingslanden N.V.
“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.
Along with its Curacao purchase, Digicel operates in 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 percent.
