Brazilian telecommunications tower company Highline, owned by the US-based DigitalBridge group, says it has successfully raised almost US$380 million through a new debenture issue, its largest fundraising effort to date and its first issuance of tax-exempt incentivised debentures in the telecommunications infrastructure sector.
The funds will be used to support the construction of new mobile phone towers across Brazil.
As news resource TowerXchange points out, Highline is the second-largest operator of telecommunications towers in Brazil behind American Tower, with some 14,000 sites. These sites include traditional mobile towers, rooftop installations on buildings, and structures for coverage of shopping centres, stadiums and other indoor areas.
It adds that the company’s business model relies on long-term, take-or-pay contracts with Brazil’s leading mobile network operators, ensuring a stable source of revenue.
Highline recently secured about US$10.84 million in financing from Brazil's national development bank, BNDES. This funding will be channelled towards the rollout of 4G and 5G mobile towers, with a focus on underserved areas seen as substantial growth opportunities for companies like Highline.
Brazil’s telecommunications sector has seen significant investment in recent years, driven by increasing demand for data and mobile services.
Highline has enjoyed a busy few years in this market. In 2020 we reported that it had acquired Phoenix Tower do Brasil, adding 2,500 new sites to Highline’s portfolio of digital communication infrastructure assets. In 2021 there was another big acquisition when financially troubled service provider Oi closed the sale of its tower unit to Highline.
