Businessman Denis O'Brien says Digicel has seen a slide recently in the market value of $925 million of its bonds that fall due in almost eight months' time, amid mounting concerns about the telecom group's ability to refinance the debt.
The March 2023 bonds have fallen to $0.72 on the dollar as of Monday from a near-par value of more than $0.98 in January, as investors fret over Digicel's exposure to emerging markets and currencies in a weakening global economy as well as mounting turmoil in the group's traditional funding source, the US junk bond markets.
Fitch, one of the world's leading credit ratings agencies, said in a note in recent days that Digicel, with operations across more than 30 markets in the Caribbean and Pacific regions, faces significant refinancing risk with the 2023 bonds.
The comments were in a publication that focused on Cable & Wireless Communications, Digicel's main competitor in a number of markets.
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