mCel to issue bonds worth USD20m, sources say

5 Sep 2008

Mozambique’s largest mobile operator by subscribers mCel is planning to issue bonds worth around USD20 million, according to a report from macauhub citing an unnamed source from the country’s stock exchange. According to the report the bond issue will take place next year although no further details were released concerning the interest rates to be paid to its creditors. mCel is 100% state-owned via Telecomunicacoes de Mocambique (TDM) and holding company Institiuto de Gestao de Participacoes do Estado (IGEPE).

mCel said it planed to invest USD70 million in 2008 to expand its network and enhance the quality of its service, reports TeleGeography’s GlobalComms database. By June 2008 the operator had increased its capacity in areas it already covered with the addition of 110 new base stations and was planning for a total of more than 200 new base stations by the end of the year. The group said its network infrastructure would cover all the country’s 128 districts by 2009. By June 2008 mCel had extended its services to the Provinces of Thin Handle, Nampula, Niassa, Sofala, Inhambane, Gaza, Manica and Tete. Chinde and Gile in the Province of Zambezia were set to be added in July. The expansion was rapid with the company reaching the level of one new base station a day in June.

Mozambique, Mocambique Telecom (TMCEL, formerly TDM, mCel)