Digicel signs €311m Caribbean deal

DIGICEL, the mobile phone operation owned by millionaire businessman Denis O’Brien, has signed a $408 million (€311 million) deal to fund its expansion throughout the Caribbean region.

The company, which already operates in high-profile sunspots such as Jamaica, the Cayman Islands and Barbados, will use the money to invest in rolling out infrastructure and target new markets. Digicel has an average market share of 60% in the seven countries where it has a presence and is shortlisted for a licence in Trinidad and Tobago.

The deal will be co-funded by leading international banks such as Citigroup, Deutsche Bank and the Canadian Bank of Nova Scotia, as well as AIB and Bank of Ireland.

“This is a most significant milestone for Digicel,” said Mr O’Brien. “We are now strategically placed to move to the next phase of our expansion.”

Mr O’Brien also said the inclusion of major banks was a vote of confidence in Digicel that signalled the “exciting” growth opportunities that existed in its chosen markets.

The company has used the refinancing package to revamp its corporate structure.

Its debt profile has been restructured, while a small number of minority shareholders have had their stakes bought out. These include the International Finance Corporation.

Digicel, which was set up in 2001 and is headquartered in Jamaica, employs more than 1,000 people and increased its customer base by 33% last year.

Lead banker Citigroup said Digicel had been “very well received” by international and regional investors. Connolly Corporate Finance and Island Capital advised Digicel.