Mexican mass media company, TV Azteca SAB de CV, has successfully issued US$274 million of bonds in global markets to finance the Peruian Fiber Optic project "Red Dorsal Nacional de Fibra Optica".
Specifically, the company has successfully issued bonds with a term of 15 years with a 5.88% yield. The issuance is rated BBB by Fitch Ratings and Baa1 by Moody's.
The notes will not be included on the balance sheet of TV Azteca as both principal and interest will be paid through the mechanism of co-financing offered by the Peruvian government to the concessionaire of the construction, as consideration for the delivery of the network infrastructure.
On 23 December 2013 Azteca won an auction to construct and operate a fiber-optic network through a 20-year concession. The firm will offer telecommunications services in approximately 80% of Peruvian territory. Construction of the network started last December, and has an estimated time of 18 months.
The nationwide fiber optic network will span approximately 13,400 km in Peru and is the first ever to be developed in the country. Upon its completion in 2016, the Red Dorsal network will connect 180 of the 195 provinces of the country to internet access and at a significantly reduced cost to end users. Azteca will commercialize the telecommunications services in 339 communities.
The company also successfully built and operates the largest fiber optic network in Latin America, in Colombia.