DENIS O’BRIEN’S Digicel mobile phone group has completed a $300 million (€225.6 million) corporate bond offering. The transaction by Digicel Ltd was a reopening of the 8.25 per cent senior notes due in 2017.

These were first issued in December 2009. The bonds in the latest funding round were priced at a premium – 102.75 to yield 7.54 per cent.

Speaking to The Irish Timesfrom the Caribbean yesterday, Colm Delves, Digicel Group chief executive, said: "The funds will be partly used to fund further expansion in Haiti where we have achieved good year-on-year growth."

It will also be used for general corporate purposes, including capital expenditure and debt service.

Digicel had 2.4 million subscribers in Haiti at the end of September and reported revenue growth of 33 per cent in its latest quarterly figures. Mr Delves said there is still “good organic growth opportunities” in Haiti.

Digicel Ltd operates in 24 markets in the Caribbean and Central America, with 7.8 million subscribers at September 30th, 2010.

It also holds a 44 per cent stake in Digicel Holdings (Central America) Limited which has 1.4 million subscribers in its operations in Honduras and Panama.

Digicel Ltd’s parent, Digicel Group Ltd, operates in an additional six markets in the Pacific, bringing Digicel’s total subscribers across 32 markets to more than 11 million.

Digicel Group Ltd posted revenues of $548 million in the three months to the end of September, up 26 per cent year on year.

Its earnings before interest, tax, depreciation and amortisation rose by 36 per cent to $235 million.

Mr Delves said the bond issue was more than two times over-subscribed.

Credit Suisse, Citi, JP Morgan, Deutsche Bank, Barclays Capital and Davy acted as initial purchasers on the bond offering.

Digicel Ltd has raised $3.8 billion in bonds since 2005 while its total borrowings – including senior debt – amounts to $4.6 billion. Mr Delves said its leverage after this latest funding round is 1.9 times.