Virgin Mobile raises USD 100 mln for LatAm expansion

News Wireless Brazil 15 MEI 2014
Virgin Mobile raises USD 100 mln for LatAm expansion

Latin American MVNO Virgin Mobile Latin America has closed a new USD 86 million equity capital funding round supported by an expanded debt facility of USD 41.5 million to include the new Mexican operation. Virgin Mobile will use the proceeds of these financings to launch the Virgin Mobile brand in Mexico in 2014 and Brazil in 2015, and to fund further growth and expansion opportunities as they arise in the region, including the company’s existing operations in Chile and Colombia.

A subsidiary of Singaporean investment company Temasek led the latest equity round. This recent financing brings to over USD 140 million the total equity invested in Virgin Mobile Latin America over the past 3 years.

Virgin Mobile Latin America has also reached an agreement in principle to expand its debt facility to a total of USD 41.5 million with International Finance Corporation (IFC) and the Central American Mezzanine Investment Fund II LP (CAMIF), to be deployed in the launch and national expansion of the company's Mexican operations. The company has current debt facilities with the IFC totaling USD 19 million for its existing operations in Chile and Colombia.

Virgin Mobile Latin America launched its MVNO in Chile in 2012 and Colombia in 2013. The company is currently preparing its launch of Virgin Mobile in Mexico and expects to receive Brazilian regulatory approval in the coming weeks for its telecom license, which will allow Virgin Mobile to launch in Brazil in 2015.

Categories:

Mobile

Companies:

Virgin Mobile

Regions:

Latin America and the Caribbean

Countries:

Brazil,  Mexico

Tags:

Voice services, Corporate strategy, Financial funding

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