The Costa Rican state-owned telco, El Instituto Costarricense de Electricidad (ICE), has confirmed media reports that it is preparing to raise an international bond.
The bond, for an unnamed amount, is set to be put on the international market in 2011….
The Costa Rican state-owned telco, El Instituto Costarricense de Electricidad (ICE), has confirmed media reports that it is preparing to raise an international bond.
The bond, for an unnamed amount, is set to be put on the international market in 2011. In a statement to TelecomFinance, it said that 13 international banks had applied to advise on the deal, and that it had chosen Citi Bank and Deutsche Bank.
ICE did not comment on reports that JP Morgan was also involved in raising the bond. JP Morgan also refused to comment.
ICE said that it had chosen Citi Bank and Deutsche Bank because of their extensive expertise in debut issuances, as well as their experience in the Latin American market. It said that these two banks also offer competitive advantages in distribution channels for the placement of issues.
ICE also said that it had commissioned an international auditing firm and a firm with experts in legal and capital markets.
Costa Rican governments have long favoured ICE’s monopoly in the Costa Rican market. But this has now changed.
An auction for the 850MHz, 1,800MHz and 2,100MHz bands is being held, which will break ICE’s monopoly. The head of Sutel, Costa Rica’s telecoms regulator, said earlier in the year that he expects this auction to conclude in December.
