Romanian telco Digi redeems EUR 450 mln of bonds ahead of 2025 maturity

Romanian telecommunications operator Digi Communications (BVB: DIGI) announced that, on September 16, the Romanian subsidiary of the group (Digi Romania) issued a notice of full redemption of the EUR 450 million bonds carrying a 2.5% coupon issued by the company in 2020 maturing in January 2025. The actual redemption date will be on September 27.

The redemption price of the notes is 100% of the principal amount plus accrued and unpaid interest from August 5, 2024 (the date of the latest coupon) to the redemption date (September 27), and additional amounts, if any.

Digi Romania (at that time RCS&RDS) launched in 2020 senior secured bonds worth EUR 850 million with two maturities in 2025 and 2028, to refinance its 2027 bonds at a more favourable cost. It sold EUR 450 million worth of bonds due in 2025 with a yearly coupon of 2.5% and EUR 400 million worth of bonds due in 2028 with an annual coupon of 3.25%.

In H1/2024, Digi had consolidated revenues of EUR 474.7 million, 13.4% more compared to the same period of 2023, while its net profit rose to EUR 28.6 million from EUR 16 million.

Digi’s shares increased by 3.37% on September 16 after the note to investors was released, bringing the company’s market capitalization to RON 6.6 billion (EUR 1.3 billion).

(Photo source: the company)