Oi looks for financing
August 20, 2019 |
Brazilian telecom could sell shares or issue bonds in the local market to fund investments, CFO says
Brazil's Oi has opened talks with banks, looking to raise up to BRL2.5bn ($619m) in fresh financing, according to the local newspaper O Estado de S. Paulo.
The telecommunications company could raise capital by selling shares or it could issue bonds in the local market. It could also borrow money from vendors to cover investments, CFO Carlos Brandão told analysts in a conference call last week.
Oi has outlined BRL7.5bn in investments this year and around BRL7bn in 2020, Brandão said.
The company unveiled an asset sales program to shareholders in July, looking to earn BRL6.5bn to BRL7.5bn by getting rid of non-core holdings, including its share in Angola's Unitel.
Before the end of the year, Oi intends to sell mobile phone towers and conclude a deal for Unitel. In 2020 and 2021, it aims to sell a data center and other real estate holdings.
Oi filed for bankruptcy protection in 2016 and reached a BRL12bn debt-for-equity swap in March last year. It raised BRL4bn from a share sale to creditors in January this year.
Oi recorded a net loss of BRL1.56bn in the second quarter this year, 24% wider than a loss of BRL1.26bn in the same quarter last year. Net revenues declined 8.2% year-on-year to BRL5.09bn and EBITDA fell 22.1% to BRL1.22bn, according to the company's latest financial results.
US asset management firm Goldentree owns 14.6% of Oi, while York has 11.1% and Brookfield holds 5.77%. Bratel, a division of the Portuguese telecom Pharol, owns 4.94%.
Oi's shares fell 0.79% to close at BRL1.25 on Monday. The company's shares sold for BRL115 in 2012.