Millicom places SEK 2 billion bond to raise funds for acquisition

By Toni Weeks

San Diego, Oct. 23 - Millicom International Cellular SA announced it has issued a five-year SEK 2 billion bond in the Swedish bond market.

According to a press release, the bond has two components: a SEK 1.75 billion floating-rate bond that bears interest at Stibor plus 350 basis points and a SEK 250 million 5 1/8% bond.

Nordea Markets was the coordinator, and DNB Markets acted as lead arranger. Nordea and SEB were joint bookrunners.

About SEK 730 million, or €85 million, of the proceeds will be used to finance the investment in Rocket Internet subsidiaries Latin America Internet Holdings and Africa Internet Holdings. The remaining proceeds will be used for general corporate purposes.

The company previously announced on Aug. 20 that it planned to complete financing transactions by the end of 2012 for its €340 million acquisition of Rocket Internet. At that time, Millicom said it had entered into an agreement with Rocket to set up franchises in Latin America and Africa in order to exploit demand.

Millicom is a telecommunications group based in Luxembourg.

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